Variation of housing consents to enable dwellings to be let out by companies beneficially owned by a former 1(1) (j) category employee

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A decision made 23 April 2010 regarding: Variation of housing consents to enable dwellings to be let out by companies beneficially owned by a former 1(1) (j) category employee.

Decision Reference: MD-H-2010-0035
Decision Summary Title :	Variation of Housing Consents to enable dwellings to be let out by companies beneficially owned by a former 1(1) (j) category employee		Date of Decision Summary:	12 April 2010
Decision Summary Author:	Housing Control Manager		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title :	Varying consent to enable dwellings to be let out by companies beneficially owned by a former 1(1) (j) category employee		Date of Written Report:	25 March 2010
Written Report Author:	Housing Control Manager/Director, Population Office		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Exemption 3.2.1 (a)(i)
Subject: Temporary change in policy to allow companies beneficially owned by former 1(1) (j) category employees to seek re-consideration of condition 5 of Housing consents granted in respect of the acquisition of residential property for their occupation, where the individual has subsequently ceased to be essentially employed and is experiencing difficulties in selling their former home.
Decision(s): The Minister approved the temporary change in policy. The Minister agreed with the Department’s recommendations as set out in the attached report, specifically that there was merit in agreeing to such requests as a temporary expedient in the current housing market, where it could be shown that there was a reasonable element of hardship, mainly on the grounds of substantial financial loss, and where there would be no further aggravation of the housing shortage in agreeing to a request for the property to be let out on a short term basis, particularly if the property would otherwise sit vacant. The Minister emphasised that any concession would be for a maximum period of 12 months and would be subject to the current company owning each property seeking a formal revised consent to the original acquisition of the property, which would contain the additional condition - “Notwithstanding the terms of condition 5, the property may be let out by way of short lease for a maximum period not exceeding 12 months. Any person taking such a lease, or seeking to occupy this unit of dwelling accommodation, shall not have any interest or control whatsoever in [the purchasing company], and any change in the destination of any units shall be by way of conveyance out of the company to a person with the appropriate qualifications within Regulation 1 (1) of the Housing (General Provisions) (Jersey) Regulations 1970”.
Reason(s) for Decision: The Minister recognised that the reason for these requests related to the current economic climate, the uncertainty that it brings, and the restriction of mortgages available to potential purchasers. It was for these same fundamental reasons that the Minister, in December 2008, agreed that development companies having difficulties selling their new development properties could let them out for a maximum period of 12 months, whilst continuing to market the properties for sale. Despite the fact that the employee would have known and accepted the conditions attached to his purchase, and that the risk of redundancy in the current economic climate is something that is being faced by a number of individuals, including those with local residential qualifications, the Minister nevertheless expressed some sympathy for essential employees who are brought to the Island, with every expectation of remaining in that employment by virtue of having an unlimited consent, but who are subsequently made redundant and forced to vacate the property which they have purchased and made their home.
Resource Implications: None
Action required: Letters to individual applicants advising them of their position in light of temporary change in policy.
Signature: Senator T J Le Main		Position: Housing Minister
Date Signed:		Date of Decision (If different from Date Signed):