The States of Guernsey has agreed changes to one of the island’s Open Market policies that will come into effect once the laws receive royal ascent.
Properties on the Open Market are available to anyone with a British passport, regardless of their residency status. In contrast, Local Market homes can only be bought by people born in Guernsey or who work here on an essential working licence.
To help explain the new Open Market policy, the residential sales team at Savills held an event for homeowners – including a Q&A with States of Guernsey Environment & Infrastructure president Lindsay de Sausmarez.
What are the changes to Guernsey’s Open Market?
The changes effectively mean that three new build properties can be added to Guernsey’s Open Market Housing Register every year.
The States hope these new inscriptions will raise at least £1.5m in additional annual revenue, as well as improve the island’s overall housing stock.
Homeowners can also transfer Open Market inscriptions from an existing property to a development of multiple new-build homes or between properties currently on the Open and Local Markets, provided they comply with a range of conditions.
This includes making it easier for long-standing Open Market residents wanting to downsize to swap their inscription with a smaller Local Market property.
The changes were developed and co-designed with industry stakeholders and property professionals – including Savills.
They do not remove any pre-existing rights that current inscription holders have for homes on the Open Market.
What impact will the changes have?
Stuart Leslie, head of residential sales at Savills Guernsey, said: “The Open Market performs an important role in our economy, but it was developed decades ago and the rules governing it have failed to keep pace with residents’ demands.
“The changes should encourage a greater variety and quality of housing stock onto both the Open and Local Markets – meeting the needs of modern offshore relocators as well as long term residents of the island.
“People continue to move to Guernsey for lifestyle reasons as much as financial and we need to ensure the island’s housing offer is competitive with other jurisdictions, while balancing that with the requirements of those looking to move on the Local Market.”
How will the Guernsey property market be affected?
Nick Paluch, director in the residential sales team at Savills Guernsey, added: “Previous uncertainty around the future of the Open Market has historically knocked confidence, however we feel this clear and well developed policy will now give owners and buyers faith and stability.
“Crucially, the changes could help unlock some Local Market developments that stalled because they were seen as no longer financially viable. If one or two properties can be released to the Open Market it may give housebuilders enough confidence to get these going again.
“We’re also acutely aware of the difficulties that some people on the Open Market face when looking to downsize, as there’s limited supply and a lack of appropriate stock. By making it easier to transfer an inscription to the Local Market it should allow for greater flexibility – and with the policy being based on a ‘one for one’ switch we’re confident it shouldn’t have any negative effects.”
What have the States of Guernsey said?
When announcing the changes, deputy de Sausmarez, said: “For many years now, our Open Market has served as an economic enabler for our island, and as a government we value the significant contribution that many Open Market residents make to our community.
"The number of Open Market inscriptions has reduced over the last decade or so, decreasing the opportunity for our island to benefit. Therefore, as agreed by the States, the aim of this policy…will be to sensitively and carefully improve the availability of Open Market properties while also ensuring that these homes are of suitable quality to meet demand.
"We've co-designed this policy with key industry stakeholders and relevant states committees to make sure that we've given it thorough consideration from every angle.
"This policy will provide a transparent and equitable process for improving what the Open Market has to offer, while ensuring that the Local Market and government revenues benefit appropriately, especially at a time when there is a particular pressure on States' finances."