Proposed reforms to shared equity schemes could make home ownership more accessible for islanders.
The DoI has outlined changes to the First Home Fixed and First Home Choice schemes, now subject to a public consultation closing in early 2026.
Political member for the department, Lawrie Hooper, said the review aimed to “make home ownership more accessible and affordable for first time buyers, whilst ensuring the schemes remain relevant and sustainable”.
Key proposed changes include resetting income thresholds to reflect current median earnings, introducing annual adjustments, and linking property price caps to a construction index.
For the open-market First Home Choice scheme, amendments could see the interest-free period on new equity loans extended from one to three years and the maximum assistance increased from 30% to 40% of a property’s value.
Residency
A significant proposed change to this scheme is reducing the residency requirement from five years to one year.
Mr Hooper clarified this applies only to the open market scheme, saying: “For the avoidance of doubt, the fixed scheme, which is the scheme that deals with first time buyer properties that are built as first time buyer homes, the residency criteria for that scheme is categorically not changing.”
This shift prompted concern from some members with Julie Edge questioning using “taxpayer funds” to support new arrivals after 12 months, asking if this could inflate open-market prices.
In response, Mr Hooper defended the policy, stating the schemes typically generate a “net surplus income for the department.”
He added: “Do I think it is right that the department supports people who are committed to buying and living and working on the island in this manner, I do actually.”
Updated
Chris Thomas questioned the pace of change, noting shared equity schemes were previously updated in 2022.
He asked: “Are they now off the table? Are we just looking at the scheme of Shared Equity that was introduced a decade ago and carrying on?”
Mr Hooper reiterated the focus was on the current proposals, which are “largely technical changes.”.
He added that the department anticipated funding the increased support from its existing budget due to “current underutilisation and forecast underspend.”