Wednesday 09 February 2022
The Committee for Employment & Social Security and the Guernsey Housing Association (GHA) are strongly refuting any suggestion that Policy GP11 is stifling housing developments.
In response to suggestions that Policy GP11 is responsible for discouraging new housing developments, the Committee and GHA are highlighting that the Policy was designed to ensure that adjustments can be made if evidence showed that the Policy would render a development financially unviable. Therefore, when Policy GP11 is correctly understood, the Committee and the GHA do not believe that this argument holds.
With the waiting lists for social rental housing and partial ownership currently standing at over 400 households, as well as increasing pressures to provide housing for relocating key workers, the Committee believes that the Policy is an important way of securing land for affordable housing at no cost to the taxpayer.
Deputy Peter Roffey, President of the Committee for Employment & Social Security, said:
"The idea that removing GP11 is the panacea to addressing the current housing supply problems is simply not true. GP11 was written so that it does not place a disproportionate burden on developers whilst also securing land for affordable housing. Where GP11 would render a development unviable, then adjustments can be made, so as not to discourage development. Whilst landowners still benefit significantly from their land being approved for development, GP11 slightly reduces this profitability to provide affordable housing at no cost to the taxpayer and without reducing the viability of the development.
"We are not helping ourselves by constantly suggesting or implying to developers that GP11 might be removed. With the current housing supply issues facing Guernsey, the last thing we should be doing is peddling uncertainty for developers."
Steve Williams, Chief Executive of the GHA, said:
"Blaming a lack of development on GP11 makes for an easy and lazy story. We have to realise that the reason for a lack of development in recent years is more complex than this. When the Island Development Plan, and GP11, was introduced in 2016, there was a period of stagnation in the housing market, meaning that it wasn't perceived to be a profitable time to develop. However, now that there is great demand for further development, preparations can be made for new homes, but this takes time for developers to put into motion. Developments need to be financed, designed and planned, which can't happen overnight."
GP11 requires proposals for development resulting in a net increase of 20 or more dwellings to provide a proportion of the developable area of the site for affordable housing.
