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1240/5(3594)
WRITTEN QUESTION TO THE MINISTER FOR PLANNING AND ENVIRONMENT BY DEPUTY P.V.F. LE CLAIRE OF ST. HELIER
ANSWER TO BE TABLED ON TUESDAY 4th DECEMBER 2007
Question
In relation to the proposals on shared equity being brought forward in conjunction with the Minister for Housing, would the Minister advise –
( a ) what progress, if any, has been made in bringing forward for debate a shared equity scheme or schemes
for Jersey?
( b ) w h e ther any difficulties have been identified and, if so, when does the Minister expect that they will
be resolved?
( c ) what work has been done, if any, in comparing existing U.K. schemes with the proposals for Jersey?
( d ) w h e ther legal advice has been sought on the proposals and, if so, what legal difficulties, if any, have
been identified?
Answer
- I can confirm that significant progresshas been made in recent weeks towards bringing forward a proposition relating to shared equity'homes.
It is important that I first clarify the Deputy 's use of the term shared equity', which can mean different things to different people. For most it suggests a form of partial or shared ownership with only part of the property being sold and the remainder held by a landlord who receives rent from the occupier on the retained share. Many of the schemes in the UK are based on this model. However, the Law Officers' Department has advised that it is likely to prove difficult in Jersey to raise a secured loan on a shared ownership property, making it difficult or impossible to operate this model.
Fortunately, there is another option available to meet the aim of providing affordable homes for first time buyers. In the Social Housing Property Plan P6.2007 approved by this Assembly on 17th July this year, the Housing Minister brought forward a deferred payment scheme for States Tenants to enable them to buy former States rental homes, with up to 25% of the first time buyer value being deferred until the next onward conveyance. This scheme is similar to a scheme operating in the UK and known commonly as HomeBuy'.
T h e potential to replicate this model on rezoned sites is currently being examined closely by my officers,
in collaboration with the Housing Department. Any proposal for such a scheme would need to be put out to consultation under Article 3(3) of the Planning and Building Law 2002, before being brought to the States for approval, as it involves an amendment to the Island Plan;
- as indicated in myanswer to part (a), work is ongoingand I expect the outstanding issues toberesolved in the near future;
- a numberofUKschemes were set outin the aforementioned SocialHousing Property Plan and have been subsequently discussedbetween the Housingand Planning Departments. However,as I mentioned in myresponse to the first part of this question,thesearenot necessarily suitable for application in Jersey;
- advice of the LawOfficers'Department has been sought on specific aspects oftheseproposals and
outstanding matters are currently being addressed as a priority consideration.