Housing crisis demonstrates leaving everything to ‘market forces’ will never solve our problem

What drew my attention was that both the new committee presidents, Burford from Scrutiny and Roffey from ESS, each singled out as one of their primary concerns the plight of those islanders seeking affordable housing. I was disappointed but not surprised that this issue was not front and central in the recent election, as far as I can recall few if any candidates even mentioned it as a major problem for the new Assembly to address.

Still, better late than never. The solution to this matter has bedevilled previous Assemblies for almost as long as I can remember. That this can still be an issue during a period in the economic cycle when bank and mortgage rates have been at a record low for more than a decade to me says that this is an indicator of a structural problem with our approach to providing for islanders’ housing needs rather than an economic problem to be addressed by the more usual fiscal means.

One of the most successful programmes seeking to address this problem in recent years was the creation of the Guernsey Housing Association, which since its inception has successfully delivered hundreds of high quality homes for lower income islanders, to say nothing of much-needed supportive living accommodation, homes for essential workers and a comprehensive upgrading of much of the island’s social housing stock. The key to its success of course is that the funding mechanism takes the property speculator completely out of the process.

It may come as a surprise to many to learn that the original idea to form a local housing association came from none other than Deputy Peter Roffey. He also coined the phrase ‘Rent-induced poverty’. That I still remember it, many years later, means it rang a bell. What Peter was saying was many islanders found themselves trapped in a situation whereby they were paying so much in rent, which, when coupled with the local high cost of living, meant they found themselves trapped being unable to save anything for a deposit on a home of their own.

This situation has in recent years been made infinitely worse by a number of decisions of the last Assembly and its immediate predecessor. When the Population Management regime was revised one of the most important and damaging changes was to remove the ‘Tax on Real Property’ cap on lower end housing, the so called local market. This had the effect of removing the last vestiges of protection for local home buyers and leaving them open to direct competition with those with cash in hand who wanted to buy to live in themselves, engage in ‘buy to rent’ or ‘lock and leave’ property ownership.

What has also not helped was the decision to effectively disband the political body with oversight of housing issues. The strength of that arrangement was that the Housing Board was not only responsible of licensing and permit matters, it also had the responsibility for ensuring those coming to Guernsey to live and work, along with everyone else, were appropriately and adequately housed.

The changes that were introduced under the revised population management regime saw this responsibility split three ways. A Licensing Authority, Employment and Social Security to look after social housing and the Home Committee to manage population issues, all of them having a hand in the decision-making process. Adding a further level of complication was the inclusion of an Employment Advisory Panel made up of representatives of local industry to guide those making licensing decisions (this panel effectively was little better an employer’s seat at the table, the panel being devoid of any political input or organised labour representation). The end result was a situation whereby those involved all seemed to have thought someone else was ‘minding the shop’ when, from available evidence, it seems in fact no one was.

When these decisions were being taken, one States member sounded the following warning. His words still ring in my ears so I hope readers will excuse me if I reprint them here again in this letter. The late Deputy Dave Jones, speaking in the Population Debate.

‘Yesterday we scrapped all restrictions for those on permits as to where they can live, allowing a free-for-all in the housing market despite the fact that many of those coming here on a permit will receive employment packages which will include generous mortgage or rental allowances not available to local people.

‘It was the day we abandoned our local people and their right of access to affordable local homes. We decided that the needs and rights of others who will come to this island are more important than our local families and those who were born here.’

Of those who listened to the debate, few could have had any doubt of what would happen in the aftermath of the removal of the controls on who might buy and occupy property in what has previously been the ‘protected’ Local Market. The result has been a free for all; properties of all types have been since flying off the books in record numbers. A glance at the property sales for September last shows one ‘Local market’ transaction for £2,632,500 with another two dozen sales all in excess of £600,000. It was stated in the Guernsey Press property feature (22 October) that sales totalled £64m. for September alone.

Yet at a time of record property sales activity, we are faced with the paradox of a rapidly escalating waiting list for affordable housing.

So to address this situation, what might we expect to see from this new-found concern by two leading and experienced politicians?

In the case of Deputy Roffey I might have been more encouraged if he had not been so firm in rejecting any notion of ‘birthright’ for locally-born children and protection of local home seekers and those looking for employment during previous States debates.

While I have no issue with his ‘non-discrimination’ outlook to policy making I would be more hopeful if he opened his eyes to the blatant discrimination suffered by many islanders going on already when they seek housing or employment in the island of their birth. He need look no further than the example of the lady who was employed briefly in August 2019 by the Committee for Education, only to find the post promptly withdrawn and given shortly after to a non-local licence holder. If Peter spoke out against this clear instance of discrimination towards a local job seeker, I must have missed it.

While Peter may have instigated the creation of the Guernsey Housing Association it was left to others to pick up the concept and turn it into a reality. As many will recall this was done ably by the late Dave Jones, who together with successive Housing Boards relentlessly drove forward the legislative and political processes that led to the association becoming the successful venture it is today.

From four years of ‘hands on’ experience of this process, having been a Housing Board member from 2008 to 2012, I can tell anyone thinking of reinvigorating the provision of social housing in Guernsey, first find yourself another Dave Jones.

So what is to be done to deal with the glaringly obvious shortage of affordable housing in the island?

A good beginning might be to return to the States decisions taken when the TRP cap was removed. Many States members expressed concerns they could be taking steps from which it might be impossible to step back. Some were so concerned they placed an amendment, which called for a periodic review of the effects of the changes to see if there had been any detrimental impact on those seeking lower cost housing. This review process seems to have been conveniently ‘forgotten’ by everybody in the frenzy of house sales that has taken place since.

When I reminded Deputy Roffey’s predecessor on ESS of the need for this review she said she recalled no such amendment and suggested that perhaps my memory may be playing tricks on me. When checking with the author of the amendment to periodically review the TRP decision, it seems his memory was also playing up because he remembered it clearly.

Perhaps what is needed is a joint review with the involvement of the new Scrutiny president and with two committees working in concert, that way some real headway may be achieved.

Who knows, we might even see the Treasury persuaded to release the necessary funds and Planning release sufficient land to enable the GHA to escape the ‘cul de sac’ where it has been skilfully parked and get on providing much needed affordable, quality housing for those islanders on their burgeoning waiting list.

I sincerely hope Deputy Roffey and Deputy Burford do make a real difference for all those seeking to escape ‘Rent-induced poverty’.

On reviewing the performance of the last Assembly in providing affordable housing one might have thought that should be relatively easy. Under their watch, if the Press Report of 27 August 2020 is correct, it would appear that the numbers of islanders on the social housing waiting list doubled during their tenure.

I would argue that what the present housing crisis clearly demonstrates is that leaving everything to ‘market forces’ will never solve our affordable housing problem.

If this remains the declared policy of this ‘New’ Assembly, then there will be little or no realistic prospect of home ownership for many lower-income islanders.

GRAHAM GUILLE, GY3 5LG.