Philip Syvret, of Benest and Syvret, spoke out after former Housing Minister Senator Sam Mézec said that Jersey was an ‘investors’ market’ and that laws needed to be changed to benefit owner-occupiers – such as banning buy-to-lets in certain developments.
In February, the States backed a proposition by Senator Mézec to ban foreign buy-to-let investors from purchasing residential properties within the Jersey Development Company’s proposed Waterfront development.
However, Mr Syvret said that he had not seen any evidence to suggest investors were preventing local buyers from entering the market.
‘The suggestion that overseas buyers are snapping up share transfer properties (for which residential qualifications are needed to occupy but not to buy) and blocking local buyers is unfounded,’ he said. ‘We deal with hundreds of transactions each year, and identify the residence and source of funds of every buyer as part of money laundering regulations, and have found no evidence that substantiates this claim.’
He added: ‘Buy-to-let is an important part of Jersey’s housing supply. Indeed, we’re fortunate as a community that we have investors who are willing to purchase houses for letting at rental of all levels.’
Roger Trower, chief executive at Broadlands, said the suggestion that a significant number of buy-to-let properties were being purchased by foreign investors was ‘totally false’.
‘To try to make out that the market is dominated by overseas investors is complete nonsense,’ he said. ‘If they want to make absolutely sure that no overseas investor could ever be involved in the local “residential” market, then just insist that all new developments of flats, sold by a States quango, are sold by flying freehold, not share transfer.’
Claire Allen, a sales director at property developer Dandara, said that the market was not awash with overseas investors, and that she was unsure where such concerns had originated. ‘I have worked for Dandara for over 20 years and we have sold to less than ten offshore investors in all that time,’ she said.
‘Even then they had some sort of link with the Island.’
And Nick Dodsley, president of the Jersey Estate Agents’ Association, said: ‘In terms of local buy-to-let purchases, it is believed that the market will inevitably dictate supply and demand and that is something that the Government of Jersey already have control over with the planning law and first-time buyer development, and assisted purchase schemes.’
Last year the JEP found that around two-thirds of the Castle Quay and Harbour Reach developments on the Waterfront were buy-to-let.
