The policy on the sale of subsidised first time buyer units of accommodation at the Albert Pier Housing site

1240/5(1954)

QUESTIONS TO BE ASKED OF THE PRESIDENT OF THE HOUSING COMMITTEE ON TUESDAY 23rd SEPTEMBER 2003, BY DEPUTY G.P. SOUTHERN OF ST. HELIER

Question 1

Would the President –

(a ) e x p lain the Committee's change of policy on the sale of subsidised first time buyer units of

accommodation at the Albert Pier Housing site?

( b ) advise how many properties have been sold or are currently under offer since the change of policy?

( c ) advise members whether the Housing Committee or the Jersey Homes Trust is the vendor for the sale of

these properties?

Answer

1. I would like to correct an inaccuracy in this question.Theapartments are being sold withoutanydegreeof subsidy interms of first time buyermarket valuation, the first time buyer restriction beingaccounted for within the purchaseprice.

T h e allocation policy applied in the allocation of first time buyer homes by the Committee, restricts the size

of accommodation to be sold according to the applicant's needs,  for example, a single person would be offered no larger than a one bedroom unit.

A  ll applicants on the  first  time  buyer list, eligible under the policy for an offer of a two or thr-ebeedroom

apartment, have been contacted and invited to view. After this exercise was completed some two-bedroom dwellings remained unsold and, in order to encourage the sale of these two bedroom apartments, the Committee made the decision to relax the allocation policy, for this particular development only, and to offer the apartments for sale to first time buyers generally.

I n the Committee's view, it would have been imprudent, because of the States investment in this site, to

maintain a policy that in any way contributed to restricting the sales to willing first time buyers. It must be remembered that because of the unique nature of this site and consequently relatively high prices, many couples either with families or planning to have families would rather wait for the opportunity to purchase one of the first time buyer houses likely to be constructed on the recently rezoned sites.

2. In view of the relatively short time period that has elapsed since this change in policy, no properties have actually been sold since that decision. However, seven of the remaining two bedroom apartments are currently under offer to first time buyerswho would not have otherwise been eligible under the allocation policy. The main viewing, forthosepersonswho have expressedan interest since the change in policy, was due to take place yesterday evening.

I n total 31 of the 70 first-time buyer units on this site have been sold, and 15 are under offer. In addition 78

units have been sold to the Jersey Homes Trust.

3. The Housing Committee is the vendorforthesale of theseproperties. Question 2

Would the President inform members of the date on which the Committee intends to inform individual States tenants of the rent rises resulting from the decision to reduce the sums available through rent abatement arising from P.74/2003.

Answer

Tenants will be notified of the changes to the terms of the Rent Abatement Scheme by circular letter on 6th October 2003.

In terms of the specific impact of P  .74  /2003 on individual tenants, a letter will be sent to each tenant on 5th December 2003, showing the rent they will be due to pay from January 2004.