THE Housing Minister has dismissed concerns raised at a Scrutiny hearing about an oversupply of first-time buyer homes.
Deputy Sam Mézec instead labelled it a problem he would “like to have” as opposed to not having enough properties for those taking their first step onto the housing ladder.
He made the comments during a hearing of the Environment, Housing and Infrastructure Scrutiny Panel on Wednesday 3 July.
During the hearing, former Housing Minister, Deputy David Warr, highlighted a “real concern” in relation to a recent proposition from Deputy Helen Miles.
The proposition, which was approved by the States Assembly last month, means at least half of the units in any future development at the Waterfront will need to be allocated to first-time buyers using assisted-purchase schemes.
The Jersey Development Company’s plans for the redevelopment of the Waterfront – which would have included around 1,000 homes – were thrown out last year after an independent planning inspector recommended that the application could not be accepted as it stood.
Deputy Warr said: “If we go on the historic numbers, we’re talking about 1,000 homes overall down there – that’s 500 [first-time-buyer] homes.”
He also noted that commitments to allocate first-time buyer properties could respectively encompass 15% and 25% of units within the Les Sablons and South Hill developments, should they both go ahead.
Deputy Warr described the figures as “a heck of a lot of first-time buyer provision” and asked Deputy Mézec if he thought an oversupply could “drive up the cost” for those in the wider market.
Deputy Mézec said: “A surplus of first-time-buyer homes is a problem I prefer to have than not having enough of them.”
He continued: “As a democratic government, we will have the flexibility to pivot if we have to in the future. So if we get to a point where we experience negative distortion in the market, because of these kind of schemes, we can at that point change our mind.”
He added: “But as I said, an oversupply of first-time-buyer homes is a problem I’d like to have.”
