Guernsey Press

GP11 threshold considered ‘too high’, report indicates

Developers think that all multiple housing developments should contribute to the provision of affordable housing, but only if the system is simplified.

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The information was revealed in a long-awaited report from consultants Arc4.

A draft of the 61-page report was published yesterday, as deputies started to debate the future of GP11 and consider suspending it. The policy had aimed for developers to use part of their projects for affordable housing, but it has failed to achieve its aims.

The report consulted with people in the industry and developers said they wanted to step up to help with Guernsey’s affordable housing shortage.

‘The view of developers was that it would be reasonable to require all new residential developments of more than one unit to contribute to the provision of affordable housing, but only providing that a simplified process and an ability to make financial tariff in lieu were brought in at the same time,’ the report stated.

‘Housing provision must simplify the process, be straightforward and transparent, provide information and certainty at the appropriate time in the development process and remove barriers to development.’

The report stated that the minimum threshold for 20 homes for GP11 to kick in had resulted in a limited impact on affordable housing through private market housing.

‘[It] is promoting inefficient use of land on an island of limited land capacity.

‘The threshold needs to be lower to enable the States to deliver the affordable housing that it identified as required through the States Strategic Housing Indicator.’

Arc4 noted that if the threshold was lowered to fewer homes, more developments would contribute to affordable housing.

‘This, in turn, could enable a reduction in the overall affordable housing contribution requirement.’

Policy GP11 was originally considering a threshold of five units, but it was increased when the Island Development Plan was debated.

The report noted that in England the principle for land use planning policies to require private market housing to contribute to affordable housing has been in place for some 20 years.

There contributions seem to centre around 30%, with government requiring affordable housing contributions to be delivered on-site.

Jersey introduced a policy of 12.5% of units in developments of nine or more being affordable housing, but the policy was scrapped after three years following feedback from the construction and development industry. Now it has a new policy, requiring 15% of units on sites of 50 or more units be affordable.

The report also looked at the principle of a payment towards affordable housing instead of the provision of land or units.

This was overwhelmingly backed by developers, stakeholders, and all political members involved in the review.

Developers felt a financial tariff would speed up the approval process for development projects.

Arc4 also agreed with the benefits and flexibility that a financial tariff could offer.