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Minister sets out housing achievements and challenges

Tuesday, 19 July 2016

Infrastructure Minister Phil Gawne MHK has today (Tuesday 19 July 2016) highlighted the progress that has been achieved and identified some of the current challenges regarding affordable housing in the Isle of Man.

Tynwald Members heard that nearly £70 million had been invested in public sector housing over the past five years, contributing to a 35% reduction in waiting lists, while £6.2 million had been provided to help 300 people buy their first homes. 

In addition to the delivery of new and replacement public sector housing, Minister Gawne said that significant improvements to thousands of existing homes, including the installation of new kitchens, boilers and external doors, have maintained standards in line with modern expectations and lifestyles. 

He added that the scale of investment underlined the importance of affordable housing as a driver of the Manx economy and a source of much-needed support for the local construction industry.

Key changes in recent years include the introduction of revised eligibility and allocation criteria for sheltered housing, and the replacement of the House Purchase Assistance Scheme with shared equity schemes for first-time buyers that have contributed to a 60% uplift in assisted open market activity. An updated design guide for affordable housing has been published, featuring new approaches to the energy efficiency of public sector housing, while further work is taking place to modernise legislation and to ensure that resources are better targeted.

In a statement to Tynwald, Minister Gawne set out future challenges and opportunities in housing and said he hopes the next Government will make dealing with fuel poverty a priority. 

He said the Department of Infrastructure is now working closely with the Cabinet Office, Department of Health and Social Care and Department of Environment, Food and Agriculture to explore options to improve energy efficiency in homes for the benefit of residents and the environment. 

Other challenges, including an ageing population and smaller household sizes, will have an impact on the design, location and cost of housing. Based on current projections, it is estimated there will be an additional 5,000 retired people living in the Isle of Man by 2026. Planning approvals may also be required for more than 3,000 homes over the next 10 years in order to keep pace with general housing demand. 

Minister Gawne said: ‘Protecting vulnerable people has been a priority for this Government and we have recognised the need to modernise services, improve access and increase fairness in the provision of affordable housing for our people, both now and into the future. To support those on low incomes the Department this year abandoned plans for a further above-inflation public sector rent increase and froze waste disposal charges.’ 

He added: ‘If above-inflation increases are to be contemplated in the future then some form of means testing must be introduced first. We also need to protect vulnerable people living in private rental properties and new legislation to better regulate the relationship between landlords and tenants must be a priority for the new Government in October. Great progress has been made over the past five years, but I accept there is still much to do.’ 

Tynwald Members were informed that housing remains a key element in the development of closer working between central and local government. 

Chris Thomas MHK, DoI Department Member, said: ‘Regional working groups came together to combine public sector housing waiting lists regionally and to consider any additional opportunities to consolidate synergies.’ 

He continued: ‘The operation of sheltered housing bodies shows how the Isle of Man’s rural parishes, towns, villages and districts cooperate usefully. It has been my privilege to chair various regional steering groups that encouraged officers to work up options for the future of public sector housing as the scope and structure of national and local government is revisited.’

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