The Committee for Employment & Social Security and the Policy & Resources Committee have come to a joint decision not to transfer the Housing Service and social rental housing stock to the Guernsey Housing Association (GHA).
In 2021, the two committees agreed in principle to the transfer, pending detailed work on the practicalities, including a stock condition survey and stock valuation report.
The recent decision not to continue with the transfer was made following receipt of a Stock Valuation Report which confirmed that the aggregate value of the 1,649 social housing units managed by the Housing service was £155 million. The basis of valuation was what is described as 'Existing Use Value for Social Housing' (EUV- SH) which assumes, among other things, that the properties would continue to be let as social housing. As the social rental housing stock generates a net annual rental income of £12 million for the States, both committees agreed that it was not the time to introduce a sustained long-term reduction to States revenue of this sum, which would have resulted had the stock been sold to the GHA.
In surveying the condition of the stock it has also been identified that, while the properties appear to be generally in good or fair condition and benefit from a programme of regular upkeep, it does require an additional investment for maintenance and improvements, especially with respect to energy and thermal efficiency requirements.
Deputy Peter Roffey, President of the Committee for Employment & Social Security said:
"Although both Committees ultimately decided not to continue with the transfer, a lot of good and useful work has come out of this project, which has provided us with a clear and detailed assessment of the condition of the social rental housing stock at present.
We are writing to all tenants so they will be receiving a letter from us in the near future explaining in more detail the decision not to go ahead with the transfer and reassuring them that we are committed to keeping the stock in good condition. The Committee will be using the information obtained through the stock condition survey to support ongoing maintenance and improvement programmes."
