Jersey Homes Trust to build 54 homes in St Helier with £8.6m loan from Lloyds TSB

The deal, the bank’s first on Jersey, will enable Jersey Homes Trust to build 54 homes in the island’s capital, St Helier.

A second deal, set to be signed by Lloyds TSB in 18 months’ time, provides a £12m loan for the trust to buy 90 homes in the capital.

Property prices on the island have been pushed up by an influx of wealthy buyers from the mainland who are using Jersey as a tax haven.

The island needs more affordable homes for local people on low incomes, who are being pushed out of the housing market.

The £8.6m deal took a year to sign because of differences between the social housing and legal systems on Jersey and the mainland.

Jersey’s social housing providers are not overseen by the Housing Corporation. Instead the island’s government, the States of Jersey, funds and regulates the sector.

St Helier gives no grants but pays loan interest if rates go above an agreed level

The government does not provide grants but promises to pay the interest on housing providers’ loans if interest rates go above an agreed level.

Michael Van Neste, chairman of Jersey Homes Trust, said: “We have more than 500 units funded by Barclays for about £75m. Barclays helped us in approaching Lloyds as we felt it would be good to have another funder. Lloyds has pretty much replicated the agreement we had with Barclays.”

He said the first development site had been designated as greenfield land until the government said it could be developed for first-time buyers and social housing tenants.

Van Neste said there could be further deals with Lloyds in future.