Jersey Homebuy Housing: amendment to Island Plan Policy H1 (P.74/2008) – comments.

STATES OF JERSEY

JERSEY HOMEBUY HOUSING: AMENDMENT TO ISLAND PLAN POLICY H1 (P.74/2008) – COMMENTS

Presented to the States on 9th July 2008

by the Health, Social Security and Housing Scrutiny Panel

STATES GREFFE

COMMENTS

In March 2008 the Housing Sub-Panel of the Health, Social Security and Housing Scrutiny Panel responded to the Planning Department's consultation on Jersey Homebuy. The Sub-Panel had found it difficult to assess the merits or otherwise of the Homebuy concept owing to the lack of detail in the proposals. This was reflected in its conclusion, which indicated strong reservations about the scheme –

T  o s ummarise, the Sub-Panel considers that there is insufficient detail presented in the consultation

document to enable it to be evaluated at a satisfactory level. There appear to be so many areas of uncertainty that it is impossible to draw any positive conclusions, whereas a number of substantial concerns arise which are not addressed.'

The Jersey Homebuy proposition (P.74/2008) was subsequently lodged substantially unchanged. Sub-Panel members therefore met with the Planning and Housing Ministers and their officers on 4th July 2008 to discuss their concerns and to try to obtain clarification regarding the substance of the proposition.

The following points were established during the discussion –

1. The JerseyHomebuy proposition would apply retrospectively to the remainingH2 sites of the existing Island Plan.
2. Homebuyhas been proposed on these sites as the Minister for Housinghasconfirmed that they are no longer needed for social rent.
3. This isseenas an opportunity to extendhomeownership.
4. The initial tranche' of Jersey Homebuy properties would only apply to some60-65 homes.
5. It is seen as anexperimentby both Ministers,butonewhich they hope couldset a precedent forthe majority offuturedevelopments.
6. The legalframework for sales under Jersey Homebuyhas yet to be established, but is similar to that used under the HousingDepartment'sSocialHousing Property Plan whichhas already seen approximately 80 homes sold to previous tenants.
7. The procedureforassessing applicants (the Gateway') is still under development, but it will be for families and will be very carefully monitored.
8. The policy for allocations has yet to be established.
9. The possibilities for extending Homebuytoothertypesofproperty on future developments will need to be investigated.
10. The Non-ProfitOrganisationswhich are intended to administer the scheme have yettobe identified – although Housing Trusts have expressedan interest.
11. The HousingDepartment has confirmed that there is currently a minimal waiting list for social rented homes,but if morewereneeded in future the 45% social housingelementon rezoned sitescould revert to providing social rented rather than Jersey Homebuyhomes.
12. Valuations would becarried out byHousing'sappointed valuers to ensure that Jersey Homebuy prices were fair.
13. The plan was felt to be perfect for uptake by Parishes, as they couldafford to take the long-term view as a prospectiveNPO.

14. The aim for the future was to centralise administration of all social and affordable housingrequirements, with a unified Gatewaymechanismwhich would enableanyone looking for housing to beassessedon their needsandgivenappropriateadvicetailoredto their circumstances.
15. The Ministers for Planning andEnvironment and Housing offered anunconditional undertaking to the Sub-Panel that if the principle ofJerseyHomebuywasacceptedby the States, they would commit to submitting the detailed plans for Scrutiny approvalbefore taking any further action.
16. Scrutiny could thus reserve sign-offon the proposals until it was satisfied with all the details that remain to bedeveloped, to include the Gatewaymechanism, legal arrangements, allocation procedures,etc.

The Housing Sub-Panel still has concerns about Jersey Homebuy

This proposal is still at an early stage and requires more work to fill in vital details, particularly in the areas highlighted in points 6-10 above. In terms of the bigger picture, no economic review has been undertaken of the significant effect that Jersey Homebuy could be expected to have on the overall market if the scheme were to be extended more widely; and no decisions have yet been reached on migration policy, which will largely determine housing needs and thus drive policy for affordable housing for the future.

While the Sub-Panel is keen to support initiatives to extend home ownership, it is clear that much more work needs to be done before this policy can be presented to the States as fully formed and ready for implementation. It is noted that some properties on the specified sites will be ready for occupation well before the end of the year, and potential buyers are already seeking to establish a place on the Homebuy list in preference to the first-time buyer list; unfortunately some will be disappointed. The haste to bring this proposition before the Assembly without first fully elaborating the various parts of the mechanism is perhaps understandable given the demand for affordable housing, but may not represent the best approach to sound policy-making. However, provided the assurances given by both Ministers (referred to in points 15-16 above) are acceptable to the Assembly, the Housing Sub-Panel is willing to work with the 2 Departments to bring Jersey Homebuy back to the States as a practical working model as soon as possible.

Deputy S. Power of St. Brelade

Chairman, Housing Sub-Panel

Health, Social Security and Housing Scrutiny Panel