I NOTE that the States of Jersey Development Company has borrowed £6 million, with significant additional funds to be borrowed in due course, to build 280 share-transfer flats on the Waterfront.
This will be in addition to the numerous share transfer flats being built in College Gardens and the thousands of share-transfer flats built by private developers and sold at premium prices.
It reminded me of a conversation that I had with a gentleman while out walking with my wife, and Basil the dog, on Grouville beach a few weeks ago.
I am often amazed how complete strangers will tell you their life story if you have a dog with you. This gentleman, who I would guess was a young 60, was living and working in Manchester for a large multi-national.
Having worked in numerous jurisdictions he had never married, never met the ‘right one’, and had no natural ‘home’. When offered early retirement a couple of years ago, he decided to retire here – despite not having any connection with the Island.
He came over to Jersey, found himself some comfortable ‘non-qualified’ accommodation, and purchased a new share-transfer flat, which he currently rents out. In eight years he will have his housing qualifications and will be able to move into his purchased flat. He will never work in Jersey and his tax contributions will be negligible. No immigration policy covers him.
One attraction of building share-transfer flats is that anyone, from anywhere, can buy them. Housing consent only comes into play if they want to occupy them.
By opening the market up to global investors – a deliberate action to encourage investment – developers can charge higher prices as the demand pool is much bigger.
Restricting the sale of share-transfer properties to those with residential qualifications would curtail investment demand, drive down prices and probably make a number of investment schemes unviable.
It could be argued that government policy is more about making money rather than providing local, affordable accommodation for local people. So you can understand why those supporting the SoJDC would want them to get their nose in the trough while times are good.
The rise of ‘buy to let’, as financing costs are well below rental returns, makes good sense for landlords, investors and developers. With the government profiteering, the only real losers are young Jersey locals priced out of the market – but then they are a minority. Selling Jersey by the pound.
