Spotlight on Les Casquets

Continuing his series of property articles, estate agent Trevor Cooper examines the history of the former Amherst Maternity Hospital site.

IT IS 10 years ago that the redevelopment of the former Amherst Maternity Hospital was nearing completion. The rambling Victorian buildings that had also served as the police headquarters were cleared before extensive excavation work for the underground car park was commenced in 2000 by local developer J. W. Rihoy & Son.

Nineteen two-bedroom and 11 one-bedroom apartments were built over three floors in three adjoining blocks, linked by a courtyard with access to underground car parking.

The development was named Les Casquets after the reef and lighthouse off Alderney clearly seen from some of the uppermost apartments.

Working in conjunction with the developer, the States made the radical decision that the new apartments would be openly offered for sale but with the price capped, in view of escalating local market property prices at the time.

Information was gathered from the Housing Authority's regular analysis, which divided the housing market into four sections, or quartiles. The highest price of the lowest quartile was £190,000 and that was set as the top price for the apartments.

That was at least 10% lower than their actual market value, but if purchasers of the two-bedroom apartments decided to sell within five years of purchasing, then the apartment had to be offered back to the States using the same formula.

This gave purchasers the benefit of any market uplift during their ownership, but prevented them from taking disproportionate advantage of having purchased at a reduced figure. Consideration was also given to any improvements carried out to the apartment and justifiable expenses in calculating the 'sell-back' figure.

If the States declined to buy back the property, then it could be sold to anyone within six months without price restriction. Six months because property prices were increasing at such a rate to justify the restriction being reinforced and the figures reviewed that often.

The one-bedroom units were not controlled in the same manner and nor were successive owners affected, but this restriction on the two-bedroom apartments remained in place for the first five years of ownership.

Another stipulation was that prospective purchasers had to sign a declaration that they would be owner/occupiers. This was in response to the wave of new landlords investing in buy-to-let properties, adding further competition in the housing market.

The need to impose such conditions was great. The thirty apartments at Les Casquets would not alone solve the increasing need for affordable housing in the lower quartile, but it was welcome at a time when the plight of first-time buyers, in particular, dominated the headlines. Using States-owned land and entering a joint venture with a local developer was an original initiative at a time when the States was facing demands to respond to the growing housing crisis.

A good idea – but not for everyone. People trying to sell properties in the same price range argued that they were being disadvantaged. Brand new, good-quality apartments offered at below the market value were tempting buyers who might otherwise consider their properties.

But the market demand was such that disgruntled owners unable to sell their properties were asked if other primary reasons were preventing their properties from selling.

The States openly hoped that setting a price cap on the apartments might put the brakes on accelerating prices.

So did cut prices mean lower standards? Not a bit of it.

The specification was impressive, without being extravagant, and the attention to detail clear to see. There are no lifts and the apartments were sold without carpets or curtains, but the accommodation is spacious, the kitchens well-equipped and bathrooms include showers over the baths with glass shower screens.

Double-glazed windows and under-floor insulation were installed for energy efficiency – standard although not yet commonplace for new buildings then. Each apartment was allocated a car parking space in the enormous underground garage and the courtyard was attractively landscaped with York stone paving and red-brick capped walls.

The public reaction was astounding. The Guernsey Press featured an article on the site when development started and, within a short time, 127 applicants asked to be added to a waiting list. Many of those people ultimately purchased alternative properties or decided not to proceed further, but the level of interest clearly reflected the demand.

Long after the lifting of the restrictions, the apartments are just as popular today with owners and tenants alike. The apartments are rarely for sale, which indicates their attraction. Only occasionally has more than one been available at the same time since new.

There are five different styles of apartment and the layout is replicated on each floor. Some are fortunate in having sea views and six ground floor apartments each have a small garden. Prices range accordingly, with the one-bedroom apartments now averaging £285,000 and two-bedroom units achieving over £300,000.

So, should the States repeat the initiative of providing capped price apartments? The arrangement did produce some practical difficulties. Mortgage providers were wary of the five-year 'buy-back' clause and owners working away from Guernsey for long periods were initially prevented from letting their apartments to tenants.

The Housing Authority is presently concentrating on updating the social housing sector and the Guernsey Housing Association is providing excellent new developments with partial ownership schemes. But perhaps more could be done in the private housing sector.

Some States-owned property is presently being sold off. As a land owner and with the experience gained from Les Casquets, perhaps the States should consider boosting the local building industry with joint ventures that pay for themselves whilst providing affordable housing.