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Guernsey developers not building approved homes could be taxed

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www.bbc.co.uk

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Sheldon Bourgaize, a man with fair hair and a stubbly brown beard on the left and Josh a man with short brown hair and tattoos on his neck on the right, wearing luminous orange tops with logos for Bourgaize Builders on the left of them. Sheldon is wearing a hoodie which has silver reflective strips on it while Josh is wearing a silver chain and hoilding a can of something in his hand.

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Guernsey developers not building approved homes could face new taxes

Overview

Guernsey's Committee for Housing is considering penalising developers who sit on land with planning permission without building homes, aiming to increase housing supply and tackle affordability issues. Property prices on the island have risen by over 52% in the past decade, with the average home costing over £600,000, driving young people and families away. While the proposal aims to encourage construction and private sector participation, some developers argue the tax would be unfair if projects become economically unviable.

Key points

  • The Guernsey Committee for Housing may introduce penalties, such as higher rates of Tax on Real Property, for landowners who have planning permission but fail to start building.
  • Property prices in Guernsey have risen by more than 52% over the last decade to an average of £608,844, while rents have increased by 65% to £2,138 per month.
  • The purchase-price-to-earnings ratio on the island has reached 14.1 times earnings, leading many young people and families to consider leaving.
  • The Committee for Housing plans to access a previously agreed £150m loan within the next few months to fund new social housing.
  • A policy letter on the issue is expected to be published in December for debate in January.
  • Developer Simon Holland criticised the proposed tax, arguing it could unfairly penalise builders dealing with projects that become unviable due to changing economic conditions.
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