Sales of Andium Homes housing stock

2019.07.16

13 Deputy R.J. Ward of the Minister for Treasury and Resources regarding the sales

of Andium Homes housing stock: (OQ.192/2019)

Will the Minister, as shareholder representative, take steps to ensure that Andium housing is not sold to off-Island investors, buy-to-let purchasers, or as lock-up and leave' investments?

Deputy S.J. Pinel (The Minister for Treasury and Resources):

Andium sells its homes to first-time buyers, who qualify through the Affordable Housing Gateway and who have been assessed as needing some assistance to purchase their first home. Sales are undertaken on a freehold, or flying freehold, basis, which prevents anyone who does not possess entitled status under the Control of Housing and Work Law from purchasing. Onward sales of these homes continue to be restricted to first-time buyers only. I do not believe, therefore, that it is necessary for me, as shareholder representative, to take any further steps.

1. Deputy R.J. Ward :

The new development around Millennium Park; I believe that 50 per cent of the homes that are being built there will be on the open market. If that is the case, how can you ensure that they are not, I repeat, sold to off-Island investors, buy-to-let purchasers, or lock-up and leave investments?

Deputy S.J. Pinel:

I think the questioner is referring to Belmont Court.

Deputy R.J. Ward :

The new development that is being planned around Millennium Park. Deputy S.J. Pinel:

There are, from memory, about 698 out of the 760 Andium currently-delivering sites of new homes and there are plenty; there are the ones at Millennium Park and the old gas site works, brewery, there is Samarès, there is Belmont Court, there is Summerland and they are all part of these developments and out of all of them only one, in Belmont Court, is going to be available on the open market and that is because Andium have to make their delivery and their construction financially viable, but the rest remain as social housing.

2. Deputy R.J. Ward :

A point of clarification, this may become my final question by the look of it, are you confirming that there will not be 50 per cent on the open market on Andium home sales in new developments?

Deputy S.J. Pinel:

Each development is completely different, so I do not think I can say a sweeping statement that all of Andium Homes planned constructions will be 50 per cent as social housing, because every construction site is different, which is why I mentioned Samarès and Belmont and Summerland as part of those developments.

3. Deputy R.J. Ward :

I apologise to the Minister, but I do not think we have really clearly got an answer to the question. If Andium homes are being built as part of a development and they are going on to the open market, which a significant number seem to be, an increasing number, in the name of repaying investment, can the Minister guarantee that they will not go to off-Island investors, buy-to-let purchasers, or lock-up and leave investments, given the recognised housing crisis that we have on this Island?

Deputy S.J. Pinel:

Yes, I think there may be a little confusion here. Andium do not put their houses on the open market, this one, that I mentioned, is a total exception, because they are social houses. The confusion lies with the development at Horizon possibly, which is S.o.J.D.C. (States of Jersey Development Company), which are lock-up and leave, Andium's are not. They may be rentable, but they are not lock-up and leave.

Deputy R.J. Ward :

Sorry, a point of clarification, I am absolutely clear in what I am asking, just to confirm and the simple answer may be no, they will not, which is great, but no Andium homes sold on any version of the open market will go to the 3 areas that I have mentioned, I will not repeat them?

Deputy S.J. Pinel:

No, it will not. Everybody has to go through the Gateway. All the housing that Andium offer has to be to people who have gone through the Housing Gateway.