Review of affordable housing percentage in developments

STATES OF JERSEY

REVIEW OF AFFORDABLE HOUSING PERCENTAGE IN DEVELOPMENTS

Lodged au Greffe on 9th February 2026 by Deputy M.R. Scott of St. Brelade Earliest date for debate: 10th March 2026

STATES GREFFE

2026  P.33

PROPOSITION

THE STATES are asked to decide whether they are of opinion

further to the periodic reviews anticipated by Policy H6 of the Bridging Island Plan, to request the Minister for the Environment, in consultation with the Minister for Housing, to undertake a review of the parameters that apply to the operation of the Policy, such review to be completed no later than the end of September 2026.

DEPUTY M.R. SCOTT OF ST. BRELADE

REPORT

I am seeking this review in response to evidence provided to me and the Minister for the Environment by members of the construction industry that the requirement in Policy H6 (pp. 208-209) of the  Bridging Island Plan (Making more homes affordable) regarding housing developments of 50 or more new dwellings has led to private developers not proceeding with proposals to build such housing developments because they are not affordable for private developers.

Policy H6 in the Bridging Island Plan (BIP) states that 15% of a development creating 50 or more dwellings should be made available for sale or occupation by islanders eligible for assisted purchase housing. The policy was initially put forward as an amendment to the BIP by Deputy Mézec (P.36/2021 Amd.(25)) with different percentage and capacity requirements. The amendment was amended by the Minister for the Environment (P.36 Amd.(25)Amd) and adopted by the States. Despite the positive intention of the amendment, the evidence suggests the content or parameters of Policy H6 is inhibiting the development of new housing for Islanders.

Policy H6 also states that the Minister for the Environment, in consultation with the Minister for Housing and Communities, will periodically review the parameters which apply to the operation of this policy and, should a need for change be identified, will issue further supplementary planning guidance to revise one or more of the following:

• the threshold size of developments to which the policy will apply;  

• the proportion of homes to which the policy applies;

There has been no periodic review of these parameters in accordance with Policy H6 since the BIP was approved by the States Assembly in March 2022.

Since the introduction of Policy H6, the following schemes subject to the 15% affordable housing requirement have received planning approval:

• Les Sablons – Decision date: 28 December 2023

• Savoy Hotel – Decision date: 21 August 2023

• Romerils – Decision date: 6 December 2024

However, none of these developments have commenced. Although the development of South Hill (decision date 7 June 2022) may proceed, this project is to be delivered by the Jersey Development Company, which acquired the site at no cost. It therefore is not representative of a normal private development model.

I have been advised by the Jersey Construction Council that, to its knowledge, no planning applications for schemes over 50 units have been submitted in either 2024 or 2025. In short, Jersey is more than 3 years into the policy, with no new large-scale private applications coming forward and no approved schemes progressing on site.

At the same time, Andium's extensive and ongoing promotion of its existing stock could suggest an oversupply of social and affordable homes or no current effective market demand for additional affordable apartments. If so, this brings the rationale for imposing the current requirements of the H6 Policy onto private schemes into question.

With respect to challenging market conditions, although interest rates have increased and begun to ease, construction costs have increased. When today's construction costs are combined with the 15% affordable housing requirement, industry has raised the concern that new private development of schemes of the scale contemplated by Policy H6 are no longer financially viable, tipping the profitability of such schemes from marginal to entirely unworkable.  

Taken together, these factors, along with the Policy or its current parameters, could be suppressing housing delivery rather than enabling it and failing to achieving the Policy's intended outcome, while also contributing to inactivity, business failure, and a shrinking construction sector. This outcome would be consistent with Guernsey's introduction of a similar requirement in November 2016 (The Delivery of Affordable Housing through Private Market Housing Development, p. 16) which Guernsey suspended in 2024 for five years in order to test if the policy is a blocker for house-building, as claimed by developers.

Currently, Guernsey is now widely seen by those in the construction industry as being open for business, while Jersey remains heavily constrained. The Jersey Construction Council has advised me some local contractors have reduced capacity in Jersey while entering and expanding in Guernsey, where neither the 15% requirement nor the 2% surcharge on second homes applies.

Statistics show core building activities in the Jersey's local construction industry have reduced.  Statistics Jersey's 2024 report on Jersey's Economy states "Output in construction of buildings fell by 5.7%, while civil engineering contracted by 3.3%, potentially reflecting weaker activity in new build and large project work." (p. 8). The June 2025 Labour Market Report reported a 3% annual decrease in jobs in construction and quarrying (p. 2) with a notable decrease in jobs in the construction of buildings (140 jobs) over the last six years (p. 33).

According to Statistics Jersey's Business Tendency Survey (June 2024) –

• Business activity in Construction was 25 in March 2022, -6 in March 2023, and -24 in March 2024.

• Capacity Utilisation in Construction was 20 in March 2022, -5 in March 2023, and -34 in March 2024. (p. 26) [1]

Furthermore, Jersey has seen a contraction of jobs and local building firms failing including –

• Style Group in August 2025

• Amplus Limited in August 2025

• Mitchell Building Contractors in October 2024

• Kalmac and associated firms in July 2024

• Camerons Ltd in 2023

• JP Mauger in 2023

 (Warning issued as two construction firms collapse).

To avoid the possibility of the industry asking for a bailout, it may be necessary for the next Minister for the Environment to pull some enabling levers in accordance with Policy H6 without further delay. The level of activity within the local construction and development market is plainly visible. The absence of activity in the form of new applications, and commencement of current ones speaks for itself.

By initiating a review in accordance with Policy H6 before the election, information would be available at the soonest opportunity to the Minister for Environment appointed by the  next States Assembly to decide  whether to issue  Supplementary Planning Guidance that might help improve the situation.  

Financial and staffing implications

It is anticipated that the work associated with the review can be carried out using existing internal resources.  The level of activity within the local construction and development market already is identifiable is plainly visible. The absence of activity in the form of new applications, and commencement of current ones already is easily identifiable.

Children's Rights Impact Assessment

I consider that this proposition has no direct or indirect impact on children and that the duty to have due regard to the UN Convention on the Rights of the Child does not arise. Accordingly, a Children's Rights Impact Assessment is not required under the Children (Convention Rights) (Jersey) Law 2022.

[1] Level of capacity utilisation: This is the current business activity relative to normal capacity'. Above capacity' indicates that a business is above its normal capacity, for example because an organisation is busier than normal or staff are working longer hours than normal. Similarly, below capacity' indicates the current business activity is below its normal capacity, for example because an organisation is quieter than normal or staff are working shorter hours than normal. (Business Tendency Survey report June 2024.pdf, p. 20)