E&I wants States to be realistic about private developers’ role

Some deputies and commentators have argued that developers would be able to meet the island’s need for nearly 200 new private homes every year, or at least get much closer to doing so, if they were freed of constraints imposed by the States.

However, E&I, which is responsible for housing policies, believes they are ignoring many of the conditions of the housing market and the financial reality of the construction sector.

‘The sector has been facing unprecedented challenges over the past few years in the form of much more expensive materials and labour, and less access to labour and finance, making the delivery of new units of housing that much harder and less likely,’ said Deputy de Sausmarez.

‘A lot of the already constrained capacity within our construction sector seems to be focused on rebuilds or extensive renovations for private clients which, while great for those individuals and while improving the quality of our housing stock, doesn’t result in a net gain in terms of units of accommodation. I have no doubt this kind of work makes commercial sense for those in the sector and I certainly can’t blame them for taking it on, but as an island we also need the type of development that will grow the total number of homes available, specified to meet people’s needs, especially in terms of size.’

Fewer than 400 private homes have been built since the current States was elected four years ago and the latest figures show that the rate of housebuilding remains static, with a net increase of only 45 units in the first six months of this year.

E&I claimed that housebuilding had not been stimulated at all by the suspension earlier this year of planning policy GP11, which previously required developers to include social housing when constructing larger sites, and revealed that since 2016 developers had allowed planning consent to lapse on two out of every three developments awarded permission.

Deputy de Sausmarez acknowledged that her committee was treading a fine line between working constructively with private developers and confronting the problem that higher profit margins were available on construction projects which did not address the island’s most pressing housing needs.

‘While I’m reassured that plenty of developers locally are motivated to do the right thing for the island, it makes sense to be cognisant of the financial considerations that are part and parcel of running any business,’ she said.

‘Understanding this does help to explain why market forces alone will not meet the island’s housing needs. It’s one of the reasons why we’re exploring the establishment of our own delivery vehicle.’

E&I published a new Guernsey Housing Plan in the middle of last year. It followed extensive analysis of the island’s housing challenges, including work carried out by specialist firm Arc4. Part of the plan sets out the need for housebuilding to focus primarily on one- and two-bedroom units, in response to a long-term decline in the average size of households.

‘We already have a generous number of larger homes in the island, but there is a real shortage of the types of homes people increasingly need,’ said Deputy de Sausmarez.

‘This is particularly true for older people, many of whom are looking for somewhere more manageable, accessible and affordable to downsize into.’