Guernsey's States have spent £4.75 million buying land off Route Militaire in the Vale in the hope of developing it for affordable housing.

The Guernsey Business Park was sold by the RED Fund, a locally-managed property investment fund.

The purchase is potentially a gamble, as the land is zoned for industrial use and so can't be used for housing without a change in its designation.

The Guernsey Housing Association and Employment and Social Security have already had talks with Planning about rezoning the 16 acre site off Route Militaire, because of the pressing need for homes.

If agreed, it could accommodate 190 key worker, social rental and part ownership homes.

"An application will be made requesting that the DPA agrees that the site be developed through the IDP policy route of Policy S5. This policy enables change of use where it is evidenced that the development will be of strategic importance to the island."   - States of Guernsey statement.

Employment and Social Security President, deputy Peter Roffey, has described it as a 'calculated risk'.

"Our committee is confident that the threshold for Policy S5 can be met on the basis that the proposed development would make a significant contribution towards meeting the island’s urgent, and increasing, affordable housing requirements, and is of strategic importance."

The 16 acre site was originally destined to be a data park, then was bought by the Red fund for an undisclosed sum.

We're told that if the development of affordable home is not permitted there, the GHA will 'convey the site to the States of Guernsey for alternative future use'.

Deputy Roffey says it is unlikely, but the States would 'own a unique site that it can use in an alternative way'.

"Land values are such in Guernsey that we believe public funds being spent on this site represents minimal risk in terms of value for money."

The GHA's chief executive, Steve Williams, says it was a unique opportunity to purchase a large site that could 'present a chance for us to make significant inroads into providing housing for the growing number of people in need of affordable housing'.

We know that some of the island’s critical services are in dire need of key worker accommodation to secure appropriate staff and we also have some 500 people on waiting lists for partial ownership and social rental. We are doing all we can to maximise opportunities to develop more housing to meet the needs of the community.

‘I’d also like to take this opportunity to reassure islanders living in the north that, should this development progress, plans will include significant improvements to infrastructure. It would be a catalyst to maximise the opportunity to address and develop a comprehensive approach to transport connectivity, including cycle and pedestrian networks. We also intend to include plans to create a major new public amenity space too."