Environment Minister Steve Luce said that his department was considering a new charge on property developers to generate funds for social housing projects and the regeneration of St Helier.
And although the minister says he wants to avoid pushing up prices, he accepts that developers may choose to pass the tax on to Islanders.
The amount of the charge, which would be payable during the planning application stage, would depend on where the development was located.
It is hoped that this would encourage development in favoured areas, like St Helier, and away from areas like green zones and the Coastal National Park – a protected area around Jersey’s coastline.
But a leading local developer has warned that such a charge would be passed on to customers in the Island, who already pay on average £212,000 for a one-bedroom flat or £530,000 for a three-bedroom house – up from £161,000 and £348,000 respectively a decade ago.
Ben Ludlum, the group property director of real estate company C Le Masurier Limited, said the proposed charge would be a ‘stealth tax’.
