Housing committee proposes first-time buyer scheme

Guernsey's housing committee is considering a range of proposals to support first-time buyers.

The proposals include an individual savings account (ISA) style savings scheme, reduced document duty and selling a selection of properties built on affordable housing sites at about 75% of market value.

The committee highlighted the proposals in its Work Plan. The proposals would require States' approval before they can be applied.

Estate agents said first-time buyers faced a variety of barriers, including initial purchase costs, getting a deposit together and home affordability.

Steve Williams, President of the Committee for Housing, said: "What we want to do is offer accommodation for people at less than market value."

The committee said it wanted to use Island Development Plan (IDP) sites to build a mixture of rented and first-time buyer accommodation.

Williams added: "If those got voted through, effectively they come at a lower land cost and that subsidy can be locked into the properties, into the prices and so hopefully we can sell them at, say, 75% of market value.

"Then we lock in the 25% subsidy so that it is not just the first buyers who benefit."

Williams said the committee took inspiration from a scheme run by Jersey's States-owned housing provider Andium Homes.

Currently, Williams said first-time buyers could seek support from Guernsey Housing Association's partial ownership scheme, which allowed buyers to purchase a share of a property while paying rent on the rest.

Andre Austin, director at property company Swoffers, said: "I have been doing this for over 20 years now - the same problems seem to come around.

"For a lot of people, it is getting the deposit together and, on top of that, the document duty."

He added a reduced document duty could help buyers.

He said: "Of course it is going to help. Is it going to be the panacea that fixes everything? No, but it is definitely a step in the right direction."

Austin said the proposal to sell homes at 75% of market value could make getting on the housing ladder more accessible.

"It would be very welcome from the point of view of getting first-time buyers and young people on the ladder.

"One of the challenges after that is circumstances change, they may have families and then they want to want to upsize - they may not realise they're going to be capped on the returns they can make."

He added the initiative would be "do-able" but it would require "a lot of thought".

Matthew Brouard, director and CEO at estate agents Cooper Brouard, said: "The biggest hurdle first-time buyers face is finding enough money for the initial purchase costs."

Brouard said a reduction in document duty could save buyers thousands of pounds.

He added: "It is an ongoing problem I have been experiencing for 40 years, so it is good the government are taking it seriously."

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