Wages unable to keep pace with house prices

The table on that page clearly shows that in 1999 the ratio of average house prices to annual salary stood at 7.2 to 1. By 2014 this had risen to a staggering 15.2 to 1.

In simple terms, islanders' wages have been totally unable to keep pace with house price inflation making it now almost impossible for ordinary islanders to own their own home.

Anyone living in rental accommodation is similarly unable to access home ownership due to the high cost of rental making it next to impossible to save for a deposit.

An article published in the Guernsey Press on 28 August 2015, written by a leading mortgage broker, argued that the solution was for the States to pump taxpayers' money into help for those wishing to enter the housing market hoping to stimulate demand.

Housing and Treasury have, wisely in our view, rejected this over-simplistic approach.

Where this has been tried previously, the only long-term beneficiaries have been the mortgage providers and the property speculators.

We would respectfully suggest the very last thing Guernsey needs in the present climate is any action to drive up property prices even further.

The way forward has to be by the proven 'Guernsey Housing Association route' of building more affordable homes on public land, a mechanism which retains the land on which homes are built in States 'ownership' (because the GHA is a 'creature' of government) and which excludes the private property speculator.

Where we would have concerns is in regard to some aspects of the reports themselves. For example, one report still talks about the 'local' housing market. As the States effectively abolished this category of housing with the removal of the TRP restrictions on who might occupy local housing, we feel the States are to some extent being misled.

While we hope the Assembly is persuaded to release land and guarantee support for the Guernsey Housing Association to provide more affordable housing, we must ensure that these houses go firstly to those waiting patiently on the various existing housing registers.

The chances of local home seekers getting onto the housing ladder are not going to be improved if any new homes are immediately occupied by those moving to the island under the new permits system, along with an unknown number of dependent and extended family members, as will be allowed under the revised, recently approved Population Management rules.

In the longer term, the way forward must be a return to some form of statutory protection for 'affordable housing'. Pressure on the island's housing stock could also be reduced by requiring those moving to the island on short-term contracts to use rental accommodation, rather than entering the home ownership market in competition with local home seekers, with all the inflationary consequences that follow such demand.

GLORIA DUDLEY OWEN,

GRAHAM GUILLE.