The renovated Former Nurses Home received no interest from any government department for key worker housing.
Treasury Minister Dr Alex Allinson was grilled on the issue in Tynwald this morning.
Members referred back to the original plans for the 37 flats, when hopes were that they would “attract keyworker, graduates and young professionals”.
However, Dr Allinson said that despite approaching all government departments and Manx Care last year, none committed to block-booking flats for their staff.
“There wasn’t [interest], so these have now gone out to the open market,” he said.
Focussing on the original question, Dr Allinson said he does not expect any deficiency after rental incomes, but members failed to push further on this.
Cowley Groves has been appointed, with rents starting at £795 per month for one-bedroom flats and £1,100 for two-bedroom units, which have attracted significant private interest.
Financed
Douglas Central Chris Thomas pressed the Minister on whether Manx Care could have financed the accommodation under the Housing Act 1955, avoiding private management fees.
Dr Allinson said that Manx Care already provides staff housing at Noble’s Hospital and pointed out that the flats were now under Manx Development Corporation (MDC) ownership anyway.
Julie Edge (Onchan) raised concerns about the allocation policy, asking how Cowley Groves would verify tenants as key worker with Dr Allinson saying the agent was matching tenants based on income and household needs.
He added that the flats were for “key workers in both public and private sectors”.
Rob Callister (Douglas East) expressed confusion over the project’s purpose, questioning whether lets were strictly short-term.
Dr Allinson confirmed 12-month contracts but acknowledged flexibility: “We can deal with the individual needs of individual tenants.”
Jason Moorhouse (Arbory, Castletown and Malew) also queried the original justification, given the lack of departmental demand.
However, Dr Allinson cited a “drastic lack of private rental accommodation”, with just four Douglas listings on Cowley Groves’ website as identifying the need for rental flats.
The flats, which cost £11m, up from the original estimate of just blown £9m, are set to open on May 1.
3 Comments