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Bid to create property rung for Manx workers fails
A PROPOSAL to create homes which can only be bought by Manx workers who do not own other properties has failed at the first hurdle.
A private member's bill proposed by Peter Karran (LibVan, Onchan) to create a new category of property was rejected by the House of Keys last week after a majority of the members voted against its introduction.
Only five MHKs voted in favour of the bill – Mr Karran, Bill Malarkey (Douglas South), Quintin Gill (Rushen), Brenda Cannell (Douglas East) and Speaker Steve Rodan.
Mr Karran's proposal was 'to provide for a new category of real property rights, restricted as to ownership and occupancy, and for a special planning process with such rights'.
He told members it was 'about putting rungs in the ladder for a property-owning democracy'.
'What do we really want as far as the housing issue is concerned?' he asked.
'Nests which are a fundamental corner stone of society? Or nest eggs which are yet another commodity for those that have money and more than one property?'
He proposed the creation of a new planning process and a third 'restricted-hold' arm in the property market which would place restrictions on who can occupy and own a property, and what it could be used for.
Mr Karran said: 'Most of us realise that what we need is nests for homes so that our young people can have a good quality of life without it blighting their finances, and being able to afford the quality of life for the next generation so they can have freedom to flourish.'
He explained: 'These properties would have to be owner-occupied, owned by an Isle of Man worker, could not be rented out and the owner could not own any other property on the Isle of Man.'
He said this would allow Manx residents to compete 'on a much more level and fairer playing field'.
'The only winners if there is an economic slump in the present housing market will be the rich, who will pick up the spoils of austerity at the expense of the people who need it,' he said.
The proposal was rejected after 14 MHKs voted against it.
WHAT DO YOU THINK?
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YOUR COMMENTS
I think it is ridiculous that 14 MHK's rejected this proposal. I am a Manx born person who is trying to get on the property ladder without success, I am on the first time buyers list and have been for nearly 2 years now and I am also on the Onchan Commissioners housing list. When any properties come onto the open market that are of a reasonable price for first time buyers they get snapped up by builders, done up and sold on again for more money or an investor buys the property and lets it out, so people like me do not have a chance. I think that Peter Karren's proposal was a great idea to give younger people a change to secure a home for themselves for the future in these difficult times I am sure that each of these MHK's own their own properties and so will not be affected. We vote them in so they should do their upmost to look after us. It would be interesting to have the reasons for rejection.
TRACY, Onchan
As a Manx resident, Manx worker and living in rented accommodation, as well as probably being one of the many first time buyers, who cannot afford the prices in the current housing market – this is just another kick in the teeth. The current prices for decent first time buyer properties are too high, the assistance offered by the government it woeful and unclear and it's harder to get mortgages large enough to cover the purchase of a property and the costs associated with the purchase. So what do are elected representatives do to help us, nothing that's what – apart from those who voted for it. And they wonder why the number of Manx people is declining on the Island. It would interesting to know the reasons why the 14 MHKs voted against bill, but I guess we'll never find out.
TIMK
Obviously 14 none Manx people, I totally agree with Peter, its the Isle of man lets give the young people a chance on the island, give them some help for a change. Stop the influx of property magnets because when they get a hold its difficult for anybody to buy property.Its time to reflect on Martin Clunns program which said it all. Keep at it Peter, KEEP it Manx.
PAUL
I quite agree with then previous comments. When are we going to consider our own young MANX people? I don't expect the 14 who voted against have any problems buying homes for themselves or their children, so is it a case of "I'm alright Jack and" ? I think it was perfectly reasonable and well thought out idea, what is wrong with this Government, surely we are trying to keep Manx people on the Island, - perhaps not !!
SUE DUNN
Disgusting. Those 14 MHK's should hold their heads in shame.
LEA, Peel
When will all Brits (and Manx) realise that owning a house is not a "right" it is a luxury and where you cannot afford a luxury, you do without. What is a "right" is the right to accomodation for oneself and family and I would agree whole heartedly that whether by private or public development there should, and must, be a lot more homes (and not just flats) available for rent to those in our society who cannot, and will never, be able to afford housing whether in the Isle of Man or on the Mainland. Most people on the continent do not on their homes and are happy to rent them.
ERIC
What a joke yet again the Isle of Man Government shows its lack of consideration to the next generation. I am 24 and my partner & I want to get a home we can start our life together & hopefully a family on the island where we were both born and both work full time; however we are coming up against hurdle after hurdle. Why is it so difficult for younger people on the island? No entertainment or places to go and now nothing to help us stay here! Peter Karran is right "being able to afford the quality of life for the next generation so they can have freedom to flourish' and I hope he keeps fighting for us as well as the others that voted for bill. I hope they can petition this if not I hope we find out who those 14 people are so we can voice our opinions to them!
SADDENED ONCHAN RESIDENT
To ERIC – we are all entitled to our own opinion but this article does not relate to Brits! If we all work hard enough each and every one of us is entitled to the luxuries, and yes owning property is a luxury but shouldn't everyone be able to have the chance to buy their "luxury" albeit a one bedroom flat or a five bed detached house! Having worked and saved hard enough to obtain this. What Peter Karran is trying to do with the bill is give younger people the chance to purchase a property, most young MANX people on the first time buyer list are looking to buy their first home have sufficient funds to do so however, when investors come swooping in and buying the cheaper property to rent out then we are left with no chance. Not everyone can afford 200,000 + houses, so rely on the cheaper houses to create their future, to have a family. All Peter Karran is trying to do is make it possible for young Manx people to be able to purchase, and stop others buying property for their own profit when they already own a nice "luxury" house themselves. Help struggling Manx couples create a future and continue their heritage. Am I to take it you are a homeowner and do not fit into the Manx first time buyers bracket. Perhaps if you have nothing constructive to add to assist with the Manx First Time Buyers your opinions would be better kept to yourself.
TRACY, Onchan
Go for it Tracy, who said it was a RIGHT Eric, it is a luxury BUT a luxury that Manx young people should have the chance at. and with government help they have every chance in the world of succeeding This might be a tax haven but its still OUR island.
PAUL, Manx and proud of it
I understand what Peter was hoping to achieve, but the idea is flawed, which is why the other MHK's voted against it, when I say "flawed" I mean it just creates another division in the market and sets aside a "lottery" for the lucky ones who will get a home, but not all, which in turn will cause resentment and more accusations of "how did they get one, I was on the list before them etc". There are homes to be had here for 1st time buyers, granted not many, I see a number of apartments of one and two beds, for 155,000.00 and under which if properly converted meet the 1st time buyer criteria. We need to overhaul the government 1st time buyer system which is hopelessley outdated now. The income levels should be raised for single people and couples wishing to purchase their homes. i also believe developers should be allowed to assist in helping with deposits, ie, taking a 2nd charge and retaining part ownership of the property until the fnancial markets stabilise, this is one way of at least getting 1st time buyers started and which in turn will move the chain onwards. 30 years ago the norm for a mortgage was a 30% deposit which everyone accepted, over the "greed" years this dropped to 10% and gave buyers more of a chance (sometimes it was possible to get 100% and 110% mortgages which in reality was stupid). I believe the government should release more land for 1st timer buyers and indeed 2nd time people also and that preferance should be given to "Manx" residints and workers (say those born here and living here for over 10 years). Part of the problem is how do developers make a profit though when farmers (or speculators) want 10 million for a few acres of land, everyone appears to conveinently forget about that, and indeed there has been many cases of this happening. prices are not going to get cheaper, most 1st timers want to live in or around Douglas and therefore the market is tight here on the type of property which they can afford, but as the saying goes, "beggers cannot be choosers" so take what is available and work your way up, whilst I do have some sympathy for the younger generation these days, they should realise that the generation before them did not have their spending power, had to save a much higher deposit and had huge interest rates to contend with, I smile when I hear them these days whinging about 4% mortgages, well, spare a thought for us that had to live and bring up families with 12% mortgages, and not that far back either, I rest my case.
TOM
Mr Karran's bill was well-intentioned – but ran the danger of creating a terrible trap for those who purchased such "restricted" property. This is evidenced by the folks who have purchased other types of restricted properties across - for example, sheltered housing schemes. Yes, it would be easier to get onto the rung, but a nightmare when you want to climb onto the next rung: perhaps when the family grows. The best way to address the housing nightmare for all (and to tame the speculators!) is to get a much better balance in the supply of housing against demand. To do that requires the Government to streamline the planning process for both new-build and for alterations and extensions to properties. That needs for all of us to be more understanding about the proposed development near to where we live. People need houses – that means houses need building.
DAVID, Ramsey
Maybe what the MHK's who are trying to push this through have to go with a different approach and not give up at the first hurdle. When my hubby and I wanted to buy our first home we had the same problem as faced by many young Manx people. The local council set up a scheme called 'Shared Ownership'. This meant that we owned half the house and they owned half the house. We only had to find a mortgage for 50% of the property and we paid the council a small rent for the other 50%. It is a great idea to get you on the property ladder. When we sold the house we kept half the profit and the council kept the other half. This meant we had a sufficient deposit to buy a new home and the council had also made a return on their investment. The scheme was only open to first time buyers under a certain income level. It's
and ideal solution.
SUE, Douglas
Isn't there a developer that already owns a great deal of manx land, only its not greenfield site?? If anything the government should search its register to see who's got brownfield sites and is just sitting on them while people are calling for homes... and either enact a compulsory purchase (at current market value) or compel the owner to proceed with housing development plans. Actually, the time for that may have already passed... I rather suspect that as the Finance industry comes under pressure from tax reporting regulations and fallout from KSF, there will be a bit of a collapse in the economy, such institutions will downsize and leave, and all these presently overpriced houses will go begging for people to buy them at knockdown prices. My suggestion to anyone who is selling, is to take the offers you can get now rather than hold out for the unobtainable. For the buyers.. the opposite is true.. hang on and in a few years the prices will have adjusted. Of course if you currently work in the Finance Sector, by that time you may not have an income. Everyone with a mortgage should be looking into insurance policies that will pay out on loss of employment if they are not already covered.. it would be painful to be repossessed. It happened in the last recession...
PP
Is it too much to ask WHY the 14 members voted against Mr karran's proposal?
CD
Take a look at the Guernsey system - there are two property markets, one for locals, one for come-overs. You have to be very well-off to buy a property on the open market to be able to move there, .whereas Guernsey-born residents can buy better, cheaper properties on the local market. It works well for first time local buyers and longstanding residents alike, and stops outside developers taking over.
CAROL, Sulby
Tracy Onchan,Sue Douglas,and Carol Sulby,have got it right,its a system that could work here, the Channel Islands parliament look after their own,and why not,they should come first before greedy speculators,why can't the people of this island see what these lame duck politician's are up to,they have been doing this for years bringing wealthy people in to buy up the houses,keeping the prices up,which means they get more taxes,and hoping these people will spend money,and deposit their millions in the banks,which means more taxes,well they have to get the money from somewhere to pay their salaries and gold plated pensions,the Tourist Industry has gone down the pan,plus they need money for the Rolls Royce projects which have been implimented and are about to be done,its,"Haven't we done a good job with all your money ",if these schemes were so good,why didn't they ask private enterprise to fund them?. PS I have started a post on YOUR SHOUT.
EORH
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