Large Developments Must Include Affordable Homes

Private developers will have to make sure a proportion of homes in large developments are allocated as affordable from the start of 2023.

It only applies to developments of 50 houses or more. At least 15% of them have to be made available for assisted purchase housing.

Senator Sam Mézec wanted it set at five or more homes, to then scale down to two or more after five years.

He also asked for 12.5% of homes to be affordable, increasing to 20% after five years.

But the Reform Party leader agreed to a compromise of 50 or more homes and a proportion of at least 15%.

"I actually don't consider that ideal - but I think that in the interest of making progress, in the interest of saying to the industry that it is now time for you to play your part and get something enacted in this (Bridging Island) plan and in force by January next year so that when these large developments are going ahead, they're going ahead with the knowledge that they will be making a contribution to affordable housing in Jersey, helping to address the crisis and provide homes for those people who need them, then I think it's worth compromising on that and saying OK, this is good enough to get some progress.

I hope that States members, having had several days now of debate over specific housing sites where many of us struggled with finding that balance between protecting our open green space and providing the affordable homes that we know we need, that debating this policy now, we know that in practice this will apply to already built-up sites, sites in town that aren't owned by the government but owned by the private sector and so this will help us secure a greater yield of affordable homes without having that negative impact on our environment."

The Environment Minister said Senator Mézec's original plan was 'not workable and would have serious ramifications for the delivery of open market housing in Jersey'.

Deputy John Young proposed the increase to 50 homes or more, instead of five.

"Senator Mézec's amendment took what is a very short paragraph in the draft (Bridging Island) Plan, coming into the process before Senator Mézec's amendment, it says we're going to look at this, we're going to look at the viability with a view to bringing it forward in later plans.

The (Planning) Inspector considered a lot of evidence about that and asked well why didn't it work? Because it's worked elsewhere throughout the UK and other places, why didn't it work? And I don't think he was satisfied with the answer, because he said well this is a good approach in principle.

But he did have to respond to the evidence coming from the industry. The industry was saying well we don't really know what the effect of this is going to be. We don't want to have unviability, it could block all housing developments."

This idea was first put forward in the 2011 Bridging Island Plan, but it wasn't implemented.

Access and eligibility for these homes will be established and maintained by the Housing and Communities Minister.

Any scheme that is just below the 50 homes threshold will have to prove that it isn't under-occupied or that a larger site isn't being brought forward to avoid having to meet the at least 15% rule.

The rules will be periodically reviewed and the Environment Minister will look at the viability of decreasing the threshold and increasing the proportion of affordable homes.

Senator Mezec's Reform Jersey colleague, Deputy Geoff Southern, says this won't have a great impact immediately - but it can eventually.

"It will only have a very gentle introduction into the market. What is significant is that built into the system is that these limits will be reviewed and I think that's significant as take this through.

I believe that this will make this significant model workable. This is a significant move to provide much-needed housing for the population and I believe it's one that must be welcomed if we are going to get anywhere with our housing crisis."

Deputy Young says it will send a very strong signal.

"Land negotiations that are happening now need to take this on board and recognise it. 

I think it's long overdue and I think it follows the footsteps of members before ourselves who were wise enough to see this is important that we do it."

It was approved unanimously by States members.

Very pleasing result in the States this afternoon, with the approval of my amendment to introduce an affordable housing contribution in large private developments.

This will help alleviate the housing crisis.

But there is still much more to do. pic.twitter.com/Q6Kt4SDM5C

— Senator Sam Mézec (@SamMezecJsy) March 21, 2022

Senator Mezec also wanted all homes on States or States-owned companies' land to be used for affordable homes.

He says it would ensure the government makes the best use of its land to address the housing crisis, rather than provide open market homes for investment opportunities.

That was rejected.