A POLICY which stipulates that 15% of units in housing projects of 50 or more homes must be part of an assisted-purchase scheme could be reviewed, if States Members agree.
Deputy Moz Scott argues that this rule has contributed to developers putting the brakes on larger housing schemes. The Assistant Economic Development Minister and St Brelade Deputy says she is seeking the review based on evidence given to her by the construction industry.
The requirement was first proposed by Deputy Sam Mezec as an amendment to the Bridging Island Plan, which was passed in March 2022. He initially proposed a 12.5% rule rising to 20% over five years.
However, his revision was successfully amended by then-Environment Minister John Young, who opted for the 15% minimum, which became Policy ‘H6’ of the BIP.
However, since the introduction of this policy, Deputy Scott argues that not one of the three private schemes approved since then which are large enough to fall within the policy – Les Sablons in Broad Street, the Hotel Savoy at Rouge Bouillon and the Romerils site in Dumaresq Street – have commenced.
She argues: “When today’s construction costs are combined with the 15% affordable housing requirement, industry has raised the concern that new private development of schemes of the scale contemplated by Policy H6 are no longer financially viable, tipping the profitability of such schemes from marginal to entirely unworkable.
“Taken together, these factors, along with the policy or its current parameters, could be suppressing housing delivery rather than enabling it and failing to achieving the policy’s intended outcome, while also contributing to inactivity, business failure, and a shrinking construction sector.”
Explaining the reason for her proposal, Deputy Scott said: “To avoid the possibility of the industry asking for a bailout, it may be necessary for the next Environment Minister to pull some enabling levers in accordance with Policy H6 without further delay.
“The level of activity within the local construction and development market is plainly visible. The absence of activity in the form of new applications, and commencement of current ones speaks for itself.
“By initiating a review in accordance with Policy H6 before the election, information would be available at the soonest opportunity to the Environment Minister appointed by the next States Assembly to decide whether to issue supplementary planning guidance that might help improve the situation.”
The proposition is due to be debated during the States sitting beginning on Tuesday 10 March.
