Housing (General Provisions) (Amendment No. 24 (Jersey) Regulations 200-

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A decision made ( 13.03.06) to approve draft amendment to the Housing Regulations in order to reduce the qualifying period from 14 years to 13 years.

Subject:	Housing (General Provisions)(Amendment No 24)(Jersey) Regulations 200-
Decision Reference:	MD-H-2006-0013		Exempt clause(s):	Public
Type of Report: (oral or written)	Written		Person Giving Report (if oral):
Telephone or e-mail Meeting?			Report File ref:	Draft1-6th March 2006
Written report – Title	Housing (General Provisions)(Amendment No 24)(Jersey) Regulations 2000-
Written report – Author (name and job title)	Peter Connew, Director of Housing Control
Decision(s): Approved draft amendment to the Housing Regulations in order to reduce the qualifying period from 14 years to 13 years.
Reason(s) for decision: Decision consistent with Migration Policy, P25/2005, approved by the States June 2005.Overall effect on housing availability and prices considered sustainable, and meets with overall States Strategic Policy. Agreed by Council of Ministers (9th March 2006) and Migration Advisory Group (2nd March 2006).
Action required: Forward to Assistant Greffier and Publication Editor for immediate lodging for States debate.
Signature: Minister		Date of Decision: 13th March 2006

Housing (General Provisions) (Amendment No. 24 (Jersey) Regulations 200-

Date of Report: 9th March 2006

Population Office – Housing Control Report

Housing Regulations –Further Reduction in Qualifying Period

Brief History

In 1980, as a means to curb increasing pressure on housing and employment, the States agreed to remove the right of anyone taking up residence in the Island being able to qualify for controlled housing by virtue of residence alone. The intention was that the lack of ever becoming eligible for secure housing would act as a deterrent to newcomers settling in the Island.

Due to the continued availability of employment and the lack of locally qualified persons to meet that need, inward migration continued with many individuals settling in the Island, many forming personal relationships and bringing up families. By the mid 90’s this mass of new residents, some having built up strong local connections and many having Jersey born children, gave rise to the two tier class of resident – those who were eligible for housing and relevant subsidies, and those who were not, although contributing fully to the Tax and Social Security regimes.

In 1995 the States considered that this was unacceptable, and agreed to establish a new twenty year residential period with effect from 2000, i.e. establishing a twenty year residence rule. By the time that came into effect there was a general consensus that a twenty year period to gain qualifications was far too long, and in January 2001 the States agreed to reduce the qualifying period by one year, and that further reduction should take place in stages until a period of fifteen years was reached. That situation was achieved by December 2003.

Migration Policy

The Migration Policy was approved by the States in June 2005 (P25/2005). When formulating this Policy over the period 2004 to 2005 the Steering Group agreed that a fundamental aim of the policy would be to reduce the qualifying period to ten years as soon as practical, and in any event by 2010. With this in mind the States had already agreed in May 2005 to reduce the period one further year from fifteen to fourteen years.

Housing Market

The experience of the additional demand on the housing stock during the gradual reduction of twenty years to fourteen years has been that additional qualifiers have been absorbed into the existing housing stock without any undue increase in prices, or reduction in the general availability of accommodation. In addition the overall economic and employment climate has not caused an increase in demand on the housing stock which itself has increased over the period by the continual development of new units.

Both the Jersey House Price Index produced by the Statistics Unit, and the Planning for Homes 2005 presented to the States jointly by the then Planning and Housing Committees, are further evidence that previous reductions have not had a detrimental effect on the market.

Financial implications

The effect of a further reduction on the States Rental Waiting List is difficult to quantify. On the basis of the experience of the last 5 years only 20 new qualifiers out of the additional 413 consents issued have become States tenants, although 51 registered on the Waiting List. A one year drop from 14 years to 13 years could result in 15 to 20 new cases going on the Waiting List although the numbers housed would probably be in single figures.

The implication for the Private Sector Rent Rebate scheme of a one year reduction is a likely additional take up of between 10 to 15 applicants at a cost between £40,000 and £60,000.

It must be remembered that the effects of the additional qualifiers only relate to a one year addition - all these applicants would qualify anyway in one year’s time under the current 14 year rule.

Conclusions

10. The reduction to 14 years has resulted in a larger number of new people qualifying than was the case with previous yearly reductions. The reason for this likely to be that the new period coincided with the date of the enlargement of the EEC in 1991 which enabled a number of people who before that time were required to leave the Island each year, to remain in continuous employment and therefore remain resident. In spite of this increased number of qualifiers, the actual impact on the housing market, and direct cost to the States due to the provision of rent rebate and/or social rented accommodation, has remained relatively minimal. The attached report identifies the impact of past reductions, and likely effects of a further reduction now.

10. In view of all the evidence to date it is felt that a further reduction by one year can be recommended now. This will be another step in meeting one of the requirements of the Migration Policy, and does take advantage of the current fluid housing market.

11. The Minister for Housing has set a timetable now for further reviews of the effect of such a reduction in order to consider an orderly reduction to 10 years. In view of the evidence provided it could be tempting to consider a larger reduction at this stage, but this is not supported at this time as any reduction in qualifying periods can accelerated, but not reversed. Reviews by the Minister, in conjunction with the Migration Advisory Group, will take place as follows-

January 2007 - consider 12 years

December 2007 - consider 11 years

December 2008 - consider 10 years.

12. Due to the increase in the number of applicants seeking to prove their entitlement under this

amendment, and the increase already caused by the previous reduction, there may be a short term resource problem which could relate to a small additional manpower cost. This will be reviewed within the Housing Control section’s current workload, and kept to a minimum.

Peter Connew

Housing Control Director