The GHA plan to demolish the derelict hotel on Ruette Braye and build new accommodation for healthcare workers by 2026.

Around 20 properties for key workers could be constructed 'a stone’s throw' from the Princess Elizabeth Hospital after the Guernsey Housing Association agreed to purchase land from the Medical Specialist Group for £1.8M.

The MSG bought the site in 2019 for £1.5M to allow staff to use parking space that it had been renting there since 2007.

The hotel has not been open for many years.

The President of Employment & Social Security Deputy Peter Roffey says funding this is essential for Guernsey:

"They (the States) can’t afford not to do it. The whole economy is dependent on trying to tackle the housing problem.

We do have in the States accounts amounts earmarked for the affordable housing development programme. Key workers are part of that so this is coming out of that allocated amount."

He says this would help to alleviate a major issue:

"We need key worker housing yesterday. We know the hospital is finding it incredibly hard to recruit and they’re telling us that one of the main problems is that they can find people, but then they just won’t come because they can’t find anywhere decent and affordable to live.

This site is pretty much a stone's throw from the PEH so it’s obviously ideal."

The President of Health and Social Care Deputy Al Brouard says this is an investment that will eventually save the States money:

"It will enable us not to be so reliant on agency staff. They do a fantastic job for us at the moment, but we would much rather have permanent staff and of course, permanent staff come at a slightly lower cost. So from that point of view, it’s an investment in the future for your health care and for your children’s healthcare."

MSG Chair Steve Evans says the deal will benefit everyone:

"Key worker accommodation is really important and it directly impacts us.

If key workers aren’t on the island then it makes it very difficult for us to do our jobs, so I think it’s a good joint venture between the MSG, the Guernsey Housing Association, and the States."

The new housing could be ready in 2026, if the planning application process, and securing a contractor, goes smoothly.

The final number of homes created on the plot will depend on the Development Planning Authority's input.