Housing committee proposes first-time buyer scheme

## Housing Committee Proposes First-Time Buyer Initiatives, Including ISA-Style Savings and Discounted Properties

Guernsey's housing committee is exploring a suite of proposals aimed at assisting first-time homebuyers, among which is an ISA-style savings scheme designed to encourage young people to save for a deposit.

The committee's "Work Plan" outlines several key initiatives, including a savings scheme mirroring the Individual Savings Account (ISA) model, a reduction in document duty, and the sale of select properties on affordable housing sites at approximately 75% of their market value. These proposals would require approval from the States before implementation.

Estate agents have consistently pointed to various obstacles faced by first-time buyers, such as initial purchase costs, accumulating a deposit, and the overall affordability of homes.

Steve Williams, President of the Committee for Housing, stated, "What we want to do is offer accommodation for people at less than market value." The committee intends to utilize Island Development Plan (IDP) sites to construct a mix of rental and first-time buyer housing.

Williams elaborated, "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." He noted that the committee drew inspiration from a scheme operated by Jersey's States-owned housing provider, Andium Homes.

Currently, Williams mentioned that first-time buyers can access support through the Guernsey Housing Association's partial ownership scheme, which allows them to purchase a share of a property while renting the remainder.

Andre Austin, a director at property company Swoffers, emphasized the importance of reliable advice for first-time buyers. "I have been doing this for over 20 years now - the same problems seem to come around," Austin remarked. "For a lot of people, it is getting the deposit together and, on top of that, the document duty."

Austin believes a reduced document duty would be beneficial. "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." He added that the proposal to sell homes at 75% of market value could enhance accessibility to homeownership.

"It would be very welcome from the point of view of getting first-time buyers and young people on the ladder," Austin said. However, he cautioned, "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 concluded that while the initiative is "do-able," it would necessitate "a lot of thought."

Matthew Brouard, director and CEO at estate agents Cooper Brouard, identified the primary obstacle for first-time buyers as "finding enough money for the initial purchase costs." Brouard indicated that 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."