Islands share similar housing problems

Of course, politicians in Jersey are reluctant to admit publicly, or perhaps even to themselves, that there is a crisis. Its States rejected a proposal to declare a housing ‘affordability crisis’ earlier this year, though debate has rumbled on since.

States in both islands are attempting to take action to resolve the ‘crisis’ without much prospect of achieving too much any time soon.

So it was enlightening to see one of Jersey’s largest business brains, Kevin Keen, writing on the issue in the Jersey Evening Post. He eloquently outlined the scale of the problem, and seemed, like the rest of us, to struggle more with a solution.

In Jersey over the past decade, average earnings have increased 26%, with the cost of living rising 25% over the same period. Rents have risen 48% and the price of houses and flats has gone up 57%.

Like-for-like figures are not readily available for Guernsey, but we do have average earnings and the cost of living rising at about 10% each over the past five years, while house prices have gone up 16% over that time and, significantly, rental costs rising 30% over that period, 15% alone over the past 12 months.

In Guernsey our 'affordable housing' waiting list is around 200-strong, while there are more than 1,000 in Jersey's Affordable Housing Gateway.

For those fortunate enough to contemplate buying a home, a six-times joint income mortgage for an average earner couple will raise some £420,000 against a mixed property average cost of £505,000. Average rent of £1,593 for Guernsey would take more than 50% out of an average local wage.

So a slightly different market challenge but one with the same outcomes as identified by Mr Keen. Expensive housing, he said, drives our young people to build lives outside the island; can make it impossible for islanders who have left Jersey to return home; makes it difficult to recruit and retain key public sector workers which we can’t produce at home; and creates mental health stress, fails to put children first, and hampers economic diversification.

All issues which apply in Guernsey. Both islands have serious problems with no obvious solutions.