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(9512) The impact of foreign capital upon the housing market

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1240/5(9512)

WRITTEN QUESTION TO THE CHIEF MINISTER BY DEPUTY M.R. HIGGINS OF ST. HELIER

ANSWER TO BE TABLED ON TUESDAY 28TH JUNE 2016

Question

What research, if any, has been undertaken into the impact of foreign capital upon the housing market and, in particular, the number of houses bought by funds in the buy-to-let market and its impact on house prices generally and will he publish this information? If the Minister does not have the information will he agree to research its impact on –

  1. housing prices;
  2. the ability of local people to get onto the housing ladder;
  3. rental prices; and
  4. house price inflation?

Answer

In Jersey, the ownership and occupation of freehold properties is reserved almost exclusively for people approved under the Control of Housing and Work Law as having entitled or licenced status. The only properties that can be brought by people without their qualifications are share transfer properties, which are substantially flats. The lead statistical indicator in this area, the House Price Index, shows that the prices of one and two bedroom have remained stable in recent years.

So, while the Control of Housing and Work (Jersey) Law 2012 does not prevent investment in share transfer properties, it does restrict the ability of non-locally qualified persons to occupy such properties, and where foreign investment does take place, it makes available additional homes for the private rental sector, which contributes towards meeting our housing needs, and we are not experiencing price increases.

For these reasons, it is more beneficial for us to continue to focus on delivering the published housing strategy – focusing on delivering more supply in the private and social housing sectors, initiatives to get the best use out of our existing housing stock, improving standards and our neighbourhoods.