The latest quarterly figures have revealed that 408 residential properties were under construction.
After numerous consecutive quarterly increases, the rate of housebuilding has now risen by more than 60% since falling to a low in the summer of 2023, when only 245 properties were being built.
The figure of 408, which reflects the position at the end of June, includes 223 flats and 185 houses. A total of 323 private homes were under construction, alongside 85 categorised as specialist or social housing.
Housing president Steve Williams said the number of homes being built was ‘headed in the right direction’ but there was ‘still a way to go’ before his committee would be satisfied that supply was matching demand.
He suggested that one factor behind the increase was direct talks started two years ago between the Environment & Infrastructure Committee, which was then responsible for housing, and private developers. These have been continued since the Housing Committee was created last year.
‘There has been a project for officials proactively to engage with private developers to understand and, where possible, remove barriers and challenges they face,’ he said.
‘It is possible we are seeing the early fruits of that work, but we would expect that it will take some time for that work to be fully reflected in statistical changes.’
Demand for housing has outstripped supply for some years, leading to soaring rental and purchase prices since around the time of the Covid pandemic.
A report produced in 2023 by housing consultants Arc4 showed that housing in Guernsey was less affordable than anywhere else in Western Europe.
In the 15-year period before that report, average house prices nearly doubled, but average earnings increased by less than a third.
Since then, purchase prices have eased slightly but the rental market remains red hot.
‘It is true to say that high demand has been present for some time, but equally true that high inflation and post-Brexit labour market changes have also brought challenges that have taken time to adapt to,’ said Deputy Williams.
‘The committee is keen to accelerate the pace of development further. The committee believes that the growth of private sector and mixed-tenure developments can continue. The committee is seeking to improve the rate of development significantly.’
Meanwhile, the Development & Planning Authority has changed the arrangements for publishing the number of homes under construction and other statistics relating to the Island Development Plan.
Quarterly monitoring reports will still be produced, but they will be released twice a year rather than four times a year.
‘This approach was adopted to make more efficient use of available staff resources, continuing to monitor and report on progress against the IDP while also supporting the delivery of other workstreams, including the focused review of the IDP,’ said authority president Deputy Neil Inder.
There will be a States debate next month on recommendations from the DPA to re-zone numerous sites for affordable housing, which it hopes would stimulate further development.
Deputy Williams said the proposals, if approved by the States, ‘would provide a pipeline to allow the committee to facilitate affordable housing development while leaving other potential sites for private developers’.