Buy-to-let investors quickly purchase homes in new development

Nearly Half of Homes in Jersey Development Bought by Buy-to-Let Investors, Minister Reveals

Almost 50% of the homes sold in the Horizon development in St. Helier have been acquired by buy-to-let investors, according to a government minister.

Deputy Elaine Millar, the Treasury and Resources Minister, disclosed that out of the 276 homes sold so far in the States of Jersey Development Company’s (SoJDC) Horizon project, 129 have been purchased by investors seeking to rent out the properties.

In contrast, 88 of the homes were bought by first-time buyers. Millar explained that the full development, which will eventually feature 280 homes, is intended to offer opportunities for a variety of buyers.

Responding to a query from Deputy Max Andrews, Millar also pointed out that the States of Jersey had issued specific guidance to SoJDC to encourage fewer properties being sold to buy-to-let investors in future projects.

In addition to Horizon, Millar shared details on the SoJDC’s College Gardens development, which consists of 187 properties. Of these, 89 were purchased by first-time buyers, while 43 went to investors.

Millar also highlighted that guidance had been provided for SoJDC’s future projects, such as the South Hill development, to restrict buy-to-let investors from acquiring units at the initial point of sale. For the Waterfront development, the guidance mandates that at least 50% of homes should be offered to first-time buyers with an assisted purchase option.

"The restrictions already implemented in response to previous States debates are considered sufficient," Millar concluded, indicating that no further measures were deemed necessary at this time.