Decision-makers are pricing locals out of the housing market
ON FRIDAY 5 February I read with great interest an article by Richard Digard titled ‘Lock, stock and barrel’s the only way to go’, in which he highlighted the States’ lack of action in tackling the chronic housing issue Guernsey and citizens currently face whilst illustrating how difficult it is for first-time buyers to get onto the property ladder and what solutions the States could adopt to cure this problem. Before continuing, may I congratulate Richard for dedicating important coverage about this issue and the brilliant way in which his article was written and presented.
This article struck a strong chord with my current situation and that of some acquaintances. I am local, in my late 20s working in education and still live with my parents. Due to the ridiculous house prices on this island, I still can not afford to move out and get my own place, and if I were to rent the monthly bills would take 90% of my earnings per month, which makes this option unfeasible. To mitigate this circumstance I have joined the Guernsey Housing Association as the only viable way of obtaining a property. I have been on the GHA waiting list for nearly two years and have moved 10 places (from 40s-30s) within that time. At this rate I will probably be in my 40s before I move out of the family home. The only item that I disagree with in the article is the suggestion that partial ownership through the GHA is less popular due to the fact you can only own 80% of the property. Most people, including myself, would probably have the finances to contribute towards the remaining 20% of a brand new property if one were to move out of a GHA premises selling 80% of your share. In my opinion, owning 80% of something is better than 0% of nothing. Then I found out about States housing so enquired about that. If you fulfil their criteria you will move onto their list and I would have started on number two hundred. Of course, if you are a single mother, perceived to be homeless, have no savings to support yourself or just have no desire to work and allow other people to support you through taxes, etc., then you get a property straight away.
Then I spoke to my chartered accountant friend who is living with his partner in rented accommodation, both work and are saving for their own house. They visit properties around the £300,000- £350,000 and are shocked at what they would get for the money involved, the selection of mortgages available and the high associated costs of getting a home. Suffice to say, they have decided to struggle on in their rented accommodation saving for the next three to five years before being able to afford the ‘better quality’ houses in the £450,000 range.
Two different circumstances highlighting three chronic issues within Guernsey: Getting on the property ladder, being able to afford a property and a chronic lack of housing and choice, affordable or otherwise. Then I read in Richard Digard’s aforementioned article how the States commissioned KPMG to analyse local housing issues and they have been sitting on those recommendations without doing anything since 2017 whilst Jersey dealt with this situation through Andium Homes. I understand that the current States are not wholly responsible for this, however, there are individuals in current government that were elected in 2016 and newly elected deputies stood on a manifesto which included housing. So what are you all going to do about this and how are you going to address this serious issue? Furthermore, to the States members who were there from 2016, why did you decide to do nothing about this situation?
Interestingly, a friend of a work colleague has left Guernsey and moved to England. She was a Guernsey-born local with a husband and young family who were renting whilst trying to save for their own home. She is a nurse whilst the husband worked in project management. They now live in England and bought a family home for less than £200,000 and what they got, a lovely two bedroom property with car parking facilities and a nice sized garden, would be equivalent to a £400,000+ home in Guernsey. The quicker decision makers in Guernsey realise you are not only pricing locals out of the market but, in essence, forcing them to leave Guernsey, which is a detriment to our community, the better unless all you care about is the millionaires or people who contribute nothing to our society. So how am I going to tackle my current situation? Unless I win the lottery, I will stay at home waiting for the GHA to contact me about a property, or leave Guernsey and seek pastures new elsewhere where the houses and general cost of living are cheaper and the government actually look after their own.
The other alternative would be to spend my savings, get my parents to throw me out of the family home and, hopefully, I will then be housed in a States house.
NAME AND ADDRESS WITHHELD.