The JEP has invited the 21 Senatorial candidates to answer a series of questions covering a wide range of key topics in the election.

Question:
How would you make accommodation more affordable for all Island residents?

Daniel Wimberley
Four policies. First, scrap the disastrous policy of growing the population. Net immigration: 2005: 300. 2006: 700. 2007: 1,100. No wonder that house price inflation is over 20%. What is going on? Could they not foresee the effect on house prices? Second, build houses on the Waterfront, not offices. This, with better use of town sites, would cater for within-population needs. Third, tax increase in land value upon rezoning. Fourth, investigate the effect of non-resident investors on the market and the feasibility of controls on the selling-on of homes.

Adrian Walsh
There are over 1,000 families on the various housing trust lists trying to get accommodation, which shows a massive lack of 2+ bedroom properties. This lack of accommodation means that people will pay higher prices for the accommodation that is available, so it is artificially increased. Planning permission should now only be given to 2+ bedroom properties to increase the supply and reduce costs. I would also like to see affordable housing encouraged through a version of the two-tier housing that is discussed on my leaflets. Outside investors should also be stopped from purchasing in Jersey.

Senator Mike Vibert
The affordability of accommodation locally is influenced primarily by the law of supply and demand. A shortage of accommodation will inevitably drive up prices. Strictly controlling population growth coupled with an increased supply of housing units should enable the market to stabilise. I support the schemes currently being developed to enable more Islanders to own their own homes, but it is vital that the States and housing associations maintain enough housing stock to cater for those who cannot enter the home-buying market.

Deputy Peter Troy
I supported the creation of the Jersey Homebuy Scheme, which provides shared equity and will be of significant benefit to first-time buyers. Additionally, when supply levels reach demand levels, prices will drop.

Montfort Tadier
The States must find out the exact extent that outsider buy-to-let speculators are pushing up prices for locals and non-quals alike. If non-Jersey-born residents who may have been here between five and ten years are not allowed to buy property here, why should we allow foreign companies that privilege? The owners of these properties could be taxed on rental value, thus slowing down speculation. And the revenue accrued could be put towards more States-owned housing.

Deputy Geoff Southern
This can only be achieved if we set and achieve sustainable population targets. Present policies result in greater J-cat migrants, adding to house price inflation. The Jersey Home Buyer scheme, while laudable, cannot solve the problem since it stokes up demand but does not increase supply. The minister has simply transferred social rental homes to the market. Ultimately, the provision of affordable housing depends on a means to reduce the price of land for development. I shall seek such a mechanism. The Housing department must remain a major provider and must not abandon housing supply to the free market.

Senator Paul Routier
While land prices are high there will need to be various mechanisms in place to assist people with limited means to either rent or buy accommodation. I support the initiatives to have a shared equity scheme together with the planning conditions for developments to have a proportion of first-time-buyer and last-time-buyer homes. For Island residents who are unable to own a home we must continue with supporting those with the lowest incomes to afford a reasonable rent.

Trevor Pitman
Success is dependent on government planning and achieving sustainable population targets. Current policies simply result in more J-cat migrants, adding to house price inflation. I believe that the provision of affordable housing now depends on finding a means to reduce the price of land for development. We should also be looking at means to acquire large, unutilised office or commercial premises, such as the site opposite the Green Street end of the Tunnel. However difficult, we must be willing to prioritise. If a small community loses its people, especially its younger generations, it will wither. Social housing must also be maintained.

Chris Perkins
Accommodation is expensive because demand always seems to outstrip supply. This was the case even when the States had a policy of at least restricting population growth. As long our government has a policy of population growth, accommodation will always be in short supply and expensive, although the eventual move to residential licences should at least reduce the ludicrous rents that some currently have to pay in the non-qualified sector. A capital tax on the sale on non-principal private residences may also reduce property speculation and slow the rise in property prices.

Mick Pashley
The price of property in Jersey is slowly starting to level off. I see little reason why current property prices will fall dramatically, and I am sure many property owners in the Island are hoping for the same. A large proportion of residents are in rented accommodation and would like to see a reduction in the prices for rental accommodation. An option for this would be to remove housing qualifications on rental properties so that non-qualified people do not pay extortionate prices for their property.

Nick Palmer
A firm population cap would take away the excess demand part of the demand/supply equation. Essential immigration should be balanced by financially assisted emigration for those who want it. There should be methods introduced to damp down property speculation. Although property price rises seem to be slowing down locally, we are now in the position that fewer people can afford to buy a home these days than in the past. This is the opposite of progress. The rent rebate scheme subsidises private landlords and acts to keep rents high but is probably too dangerous to tinker with.

Senator Philip Ozouf
A successful economy creates the challenge of higher house prices. I want an Island where all young people can aspire to the goal of home ownership. I was the first politician to promote shared equity and got rid of the lottery of first-time-buyer allocations. I also conceived and delivered the system of ‘planning obligations’ which, for the first time, has delivered hundreds of social rented units and first-time buyer homes. We can do more and I want to see these obligations extended to all commercial sites.

Jeremy Maçon
Stop developments being sold to investors. Once speculation ends the market will have to adjust to what local people can afford to pay for a property. We should be building homes for life at affordable prices, not expensive starter homes. Every time a property is sold the price rises, but people cannot remain in tiny properties when they start a family so they are forced to move. We should ensure that rooms are a reasonable size through tough regulations and also control immigration, retaining the housing qualifying period, as while the demand exceeds the supply, prices will not fall.

Deputy Alan Maclean
I don’t support building on any more greenfield sites in the countryside. The cost of housing can be made more affordable by increasing the supply. I support the regeneration of St Helier, where there are good opportunities to redevelop older office buildings into residential use as well as brownfield sites. I support the shared equity scheme. I also believe there is some merit in investigating ‘generation’ mortgages similar to the scheme operated in Japan in the 1980s. This allows monthly repayments to be dramatically reduced as the mortgage repayment period is extended.

Ian Le Marquand
We have a serious problem with the price of houses and flats. This has been worsened by the current growth policy with 1,100 net immigration in 2007 and 800 in 2006, coupled with a large number of new
J-category people. The rental market is also affected although to a lesser extent. Prices are based upon supply and demand and with a limited supply of new units, any increased demand has a major effect. We must therefore first have firmer control of immigration. On the supply side, the States must find appropriate sites to build more accommodation, particularly small houses.

Nick Le Cornu
We will not be able to make housing more affordable until we reduce the speculative share of the market. No measure will be effective if it is not enforced with the aim to cut out speculation. In Britain and the US that speculation either in the housing stock itself or in the underlying financing even damages the market in the end. The important question is whether we want housing or simply a housing market.

Cliff Le Clercq
Introduce a properly managed immigration policy. Too much demand, greed and lack of realism have driven prices to dizzying heights. Keep the housing qualification period as it is. Too many people are coming into the marketplace. Stop outside speculators buying in the market. The shared equity has had a good response and keeps the dream of ownership alive in those who need it, though the old States loan had a lot going for it. How are a young couple supposed to find £100,000 at the moment as a deposit?

Mike Higgins
I would restrict the purchase of homes or flats by investors from abroad – investors who cannot live in the properties themselves. The limited supply of housing combined with the high demand from inside and outside the Island is driving prices up to unsustainable levels and denying many young people owning their own homes. In many cases it is driving Islanders away. It is a scandal that must be addressed. The States must also assist by shared equity schemes. Although one has been proposed, it remains to be seen whether it will be successful as many aspects of the scheme need to be clarified.

Mark Forskitt
Make houses attractive as places to live but not viable as short-term capital investment opportunities. A tax on capital gains on house sales, with a relief of RPI plus 1.5% annually so that long-term owner-occupiers are not disadvantaged. This policy is particularly useful when used alongside shared equity schemes – anyone trying to make a fast buck out of the ownership of subsidised housing purchase pays back a lot of tax, since the capital element will appear as a large gain.

Deputy Sarah Ferguson
 Modern building techniques – building with bricks or blocks is labour-intensive and slow. I identified the fact that many of the town flats sold under share transfer have been sold to off-Islanders. I have a promise that all new flats will be flying freehold, giving housing and the population office a greater control. It is wrong that low-cost accommodation – intended to give young Islanders a foot on the property ladder – should be sold outside the Island for buy to let.

Deputy Alan Breckon
Housing’s need to rent and buy residential property is a long-standing problem. However, it is not helped by building apartments on former commercial or hotel sites and allowing them to be sold outside the Island. This must be stopped. Shared equity must become a reality because the real cost of housing is that the average price of dwellings sold in Jersey was £480,000 in the 12 months to June 2008 – an average increase of 24%. Average earnings were £31,200 per year – a multiplier of over 15 – putting affordable home ownership beyond the means of many. Also encouragement of longer leases with security of tenure would help.