HUNDREDS of affordable homes could be delivered each year under a new government programme that aims to tackle Jersey’s housing crisis and population challenges by addressing years of underinvestment in the Island’s critical infrastructure. But can it deliver the homes Islanders need – and keep them here? Jodie Yettram reports.
IN what ministers have described as a response to one of the “most pressing challenges” facing the Island, the government has announced plans to deliver up to 400 affordable homes a year as part of its new 25-year capital investment strategy.
The Investing in Jersey programme, published this week, sets out a long-term pipeline of public projects across housing, education, transport and public services.
It is underpinned by a proposed Capital Investment Fund, designed to ringfence funding required for infrastructure projects over the coming years.
The strategy includes proposals for a new further education campus to replace Highlands College, upgrades to roads and drainage systems, investment in sports facilities and the long-awaited redevelopment of Fort Regent.
But at the heart of the plan is housing – with ministers pledging thousands of new affordable homes over the next decade to support families, attract and retain key workers, and provide options for older Islanders and migrant workers.
The housing proposals are also intended to help address falling birth rates, a shrinking working-age population and the increasing number of young Islanders choosing to leave the Island.
Housing Minister Deputy Sam Mézec said: “Access to secure, affordable housing is one of the biggest challenges facing Islanders today.
“Through Investing In Jersey, we are delivering new homes that meet the real needs of our community – from family housing to key worker accommodation and downsizer options.
‘This isn’t just about bricks and mortar, it’s about giving people the chance to build a life here in Jersey, with dignity, security and opportunity.”
What is the government promising to build?
The plan sets a target of delivering 400 affordable homes each year over the next decade, and includes a mix of schemes for families, first-time buyers, key workers and older Islanders.
It also includes commitments to expand shared equity schemes like Homebuy and First Step, and to relax housing restrictions for workers in specific sectors.
Deputy Mézec said: “Right now, we get feedback from key workers that when they arrive in Jersey, they have good landing accommodation provided through the government and often Andium, but the move to private rent becomes very difficult because of their restricted choices.
“By making this easier [through the licensing system], we will hopefully keep more of our keyworkers here.”
Senior policy officer Paul Wylie added that the aim is to give Andium and the States of Jersey Development Company “far more leeway to build many more affordable homes for families” with a greater focus on three- and four-bed homes and two-bed houses rather than on flats.
He continued: “If you want to encourage the working-age population [to stay in Jersey], if you want to do anything about the birth rate, if you want to encourage more families, it starts with housing.”
Where could new homes be built?
Several government-owned sites are being considered for development, including Westaway Court and the former St Saviour’s Hospital site.
In the longer term, the current Highlands College site could also be repurposed for affordable housing, if a new further education campus is successfully built in town.
Other sites identified in the Bridging Island Plan also remain under consideration.
How will all of this be paid for?
The government is proposing to create a new Capital Investment Fund, which would ringfence funding for long-term infrastructure projects and protect them from being scaled back or delayed through the annual budget process.
Deputy Mézec said the housing model is based on the existing Housing Development Fund, which was created just over a decade ago with £250 million and enabled Andium to upgrade and expand its housing stock. In 2014, the States agreed to borrow £250 million to invest in social housing – which at the time was the largest amount in the Island’s history.
“You could say that this model has been inspired by what we have already done with housing,” the Housing Minister said. “A decade ago, Jersey’s social housing was in a terrible state. So we set up a new ringfenced fund with £250m, which Andium then used to restore its housing stock and build new housing.
“This meant the vision and strategic direction were set, but were no longer tied to the government’s annual budget processes, which can provide a yearly opportunity to be disrupted and scaled back.
“Because of that, they were able to stick to their mission, bring their homes up to ‘Decent Homes’ standards and build lots more, which then gave us the footing to be able to widen social housing eligibility and introduce more first-time-buyer support.
“It has been transformative.”
The new fund will be included in this year’s Government Plan. If approved by the States Assembly, it will receive an initial £80 million in 2026.
Unlike the Housing Development Fund, the new fund could be used by other developers – including the States of Jersey Development Company and private developers – provided the projects include affordable housing.
Deputy Mézec said: “Andium already has a £100m loan agreement, which they obtained privately on good terms, which will enable them to develop a significant amount of new homes.
“The Capital Investment Fund could be used on top of that, when the government can obtain good borrowing terms for it.”
He stressed, however, that all projects would still be required to go through the normal business case and approval process.
“There is still a lot of detail to be worked out on the specific elements of this, and the States Assembly won’t be able to actually debate the law to set up the new Capital Investment Fund until the principle of it has been agreed later this year,” he said.
How will this help with falling birth rates and population decline?
The housing element of the programme is being presented as a response to long-standing concerns about affordability, declining birth rates and difficulty in recruiting and retaining key workers – with Chief Minister Lyndon Farnham describing the overall strategy as “a key step” in addressing demographic challenges.
“We currently face significant challenges, but we also have a real opportunity to shape a future that rebuilds confidence, inspires the next generation, and ensures our Island remains a place we’re proud to call home,” he said.
Speaking to the JEP, Deputy Farnham described the housing shortage as a key reason many young Islanders are putting off starting families or choosing to leave.
He said: “We have a lot of young people who have bought flats. I can speak from experience with my daughter and her husband, both teachers. They have a wonderful flat down at the Waterfront, but it’s a two-bedroom flat, and that prohibits them having more children until they upgrade to a house, which is challenging.”
He added: “It should be unacceptable that our young people are not aspiring or able to afford to own or rent a family home. We’ve got to stop that.”
What does the data show?
The proposals come as new data from Public Health revealed that Jersey’s birth rate is continuing to fall – with the Island’s fertility rate among the lowest in the world and well below the level needed to maintain the population without migration.
Meanwhile, data from Statistics Jersey shows the number of Islanders in their 20s and 30s has dropped by 7% between 2017 and 2023. The decline is particularly pronounced among 20- to 24-year-olds in Jersey, where the population fell by 13% over this period
It also comes as a recent survey revealed that nearly half of Year 10 and 12 students do not consider Jersey a viable place to build a life and career – with over a third of sixth form students planning to leave the Island for university and not return.
Who counts as a key worker – and what will they be offered?
The plan also includes a proposal to broaden the definition of key workers to include both public and private sector staff.
Mr Wylie, chief officer of the Cabinet Office, said: “We recognise that we need carers, nurses, teachers, but for quality of life purposes, we also need hospitality, the private sector, caring and construction. So we’re looking at those essential workers and making sure there’s going to be facilities for them.”
He added: “We need to recognise that our migrant workers want accommodation to be as cheap as possible in order to send money home to their families. So what can we do in the policy space or planning guidance to make that a reality?”
What support will be available for first-time buyers?
Support for first-time buyers will include expanding successful schemes such as the First Step and Home Buy initiatives, which help people get onto the property ladder by reducing the up-front costs of buying a home.
There is a focus on providing more flexible options, such as shared equity, to help with deposits, while the government is also looking at increasing the level of support for those who need it most, including offering higher equity shares for those on lower or middle incomes.
Mr Wylie asked: “Looking at our really successful First Step and Homebuy initiatives, what more can we do to make sure they’re rolled out into future years?”
He added that housing support should evolve with people’s needs: “When a couple who’ve had a First Step home then have their first child, what can we do to support them in that next phase of their journey?”
What about older Islanders?
The strategy also includes a focus on downsizer and retirement housing.
The aim is to create more attractive options for older Islanders who may want to move out of larger homes, which could then become available for younger families.
“If they can and want to move into these properties,” Mr Wylie said, “we know that then frees up those larger properties into the market again for families and children. We want to make sure that at every point in our housing ladder there’s something that will push them on.”
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What are the key housing proposals included in the plan?
- More family-sized housing (two-four bedrooms) through Andium, JDC and private partnerships
- New homes for key workers, particularly in health, education and emergency services
- Expansion of shared equity schemes such as Homebuy and First Step to help young Islanders get a foot on the property ladder
- Relaxing housing restrictions on registered workers in specific sectors
- Housing for older Islanders, including downsizer properties and retirement communities
