THE government will support the development of new homes on rezoned land in the countryside that are suitable “for those who wish to downsize within their community” as part of a policy to tackle under-occupancy in Jersey.
Housing Minister Sam Mézec’s new “right-sizing” report sets out a number of strategies, including requiring social-housing providers to support under-occupying tenants to move. But Deputy Mézec has ruled out a stamp duty relief scheme as an incentive.
Instead, the minister said he would work with Treasury Minister Elaine Millar “to consider fiscal incentives in the future” – the details of which were not specified in the report.
Data included in the 2021 census indicated that 44.1% of all owner-occupied homes were under-occupied.
In his new report, Deputy Mézec said the government would support “the development of new and desirable homes on rezoned housing sites across the country parishes, suitable for those who wish to downsize within their community”.
Several fields were rezoned for affordable housing development under the Bridging Island Plan, in St John, St Martin, St Mary, St Ouen, St Peter, St Saviour and Trinity.
Other policies in Deputy Mézec’s right-sizing report include:
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Creating an obligation for social-housing providers to offer support to under-occupying tenants, by “helping them to move into homes they can afford and will be happy in”.
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Providing advice and support to those looking to right-size through the government’s housing advice service.
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Encouraging and supporting the States of Jersey Development Company to provide suitable right-sizing support packages on new developments, including South Hill.
The concept of right-sizing has gained prominence in recent years.
In 2021, then Housing Minister Russell Labey considered support for right-sizing among the measures in his Creating Better Homes plan.
At the time, Deputy Labey said that supporting homeowners who wished to move to smaller, more suitable properties could help increase the supply of larger houses for families who needed them.
According to Deputy Mézec’s new policy, the percentage of “downsizing” transactions has remained at around 30% since 2018, despite the overall drop in houses being sold last year.
The report also noted that stamp duty has been cited as “a potential barrier” for those looking to right-size into smaller homes.
It explained: “Particularly for people who have owned their property for a long time, it is likely that equity will be released upon the sale of the larger home and the payment of stamp duty on the new smaller property will reduce the amount of capital realised once the transaction is complete.”
It also said that Deputy Mézec “has been interested in developing a stamp duty relief option” to support right-sizing, noting that the responsibility for tax policy rests with Treasury Minister Elaine Millar.
However, the document added that: “Due to the complexity of legislative changes that would be required to deliver a stamp duty relief, the difficulty of ensuring this is appropriately targeted, and an inability to quantify any potential loss in revenue, stamp duty relief is not being offered as part of this policy.
“The Housing Minister will seek to work with the Treasury Minister to consider fiscal incentives in the future.”
Right-sizing involves someone moving into a new home that can better meet the requirements of their household – one that is the “right size” for their needs.
