Homeowners struggling to sell could get more help

Jersey's housing minister said he wanted to see the expansion of the help to buy scheme, following concerns raised by islanders trying to sell smaller properties.

The First Step scheme is a shared-equity initiative by the government and Andium Homes that helps first-time buyers purchase a home on the open market.

Housing Minister Malcolm Ferey said if people could use shared equity into their next mortgage it could help them buy within the market they wanted to.

Islanders and estate agents said there was "disruption" in the market because of a number of properties that have been built by Andium, the island's States-owned housing provider.

Bethan Hughes and her partner have been trying to sell their property since September and said: "We've looked and there have been some lovely houses that we could buy but we have really struggled to get anyone through the doors to come and view here."

Hughes said they have already dropped the price once but needed to be cautious not to drop it too much and then not be able to afford their next property.

In the 2021census, one-bedroom homes accounted for 40% of vacancies, much higher than their 26% share of occupied stock.

But new data from Statistics Jersey showed the island faces a projected net housing shortfall of 310 homes between 2026 and 2028.

This data, however, does not take into account any new homes that might be built.

Deputy Ferey said: "If people could use the shared-equity scheme into their next mortgage, or an even high stake into their next purchase, that would enable to help them buy within the market they want to.

"What this report tell us is about people's ambitions and the data set tells us where the gaps are. It also informs the type of housing we do need to be supplying to our community."

Director of Broadlands Harry Trower said Andium had disrupted the local market in a different way then had previously been seen and people in the "Andium market" did not "complete chains".

He said: "What you're seeing is the guys in a three-bedroom semi wanting to move to a four-bedroom detached not being able to sell that house.

"[That's] because the people who want to buy theirs can't sell their apartment because the person who was going to buy that apartment looked at their apartment and then went to Andium."

Andium is responsible for more than 5,100 homes and provides social housing for more than 10,000 islanders.

Trower said it was an "unintended consequence of a good idea" that has been government backed.

"It's the repercussions through the market. Andium buyers pay little or no stamp duty. But local market buyers do," he said.

"So the wrangling for the government is, how do you give people who want to move up the chain an incentive to do that instead of going to Andium."

Carl Mavity, chief operations officer at Andium Homes, said: "We disagree with the suggestion that Andium Homebuy has 'broken market chains' or made it harder for people to sell properties in Jersey.

"Our sales through the Andium Homebuy scheme are to islanders on the Assisted Purchase Pathway who, under the criteria set by the housing minister, require support because they cannot afford to buy on the open market.

"We are therefore facilitating homeownership from a group that would otherwise not be able to buy."

Andium Homebuy allows eligible buyers to purchase a home outright whilst deferring 25% of the purchase price for their entire period of ownership, and generally without the need for a deposit.

Ferey said: "We need to have upward mobility in the housing market. If we don't, parts of it stagnates. So if we allow people to move up, equally allow people to downsize and incentivise that behaviour. It will be good for the whole of the market."

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