Citizens Advice Jersey has indicated its support for key amendments within plans to overhaul Jersey’s Residential Tenancy Law – including a cap on how much rent can be increased each year.
The charity, which provides independent, confidential and impartial advice to islanders, has made a written submission to the Environment, Housing and Infrastructure Scrutiny Panel’s review of proposed changes to Jersey’s legal framework for residential tenancies.
Rent increases and uninhabitable accommodation are issues we come across regularly
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If approved by the States Assembly this summer, the draft legislation being brought forward by Housing Minister Sam Mézec would stop landlords from raising rent more than once a year, limit rent increases at the rate of inflation (RPI) and cap them at 5%, as well as allowing tenants to challenge unfair rent hikes through a new Rent Tribunal, among other changes.
The Panel launched its review in March and intends to present a report of its findings, including key recommendations for government, ahead of debate by the States Assembly.
In its submission, Citizens Advice Jersey said it assisted islanders “with a range of housing issues”.
“Most commonly, we see problems that occur when a tenancy is terminating at the end of a fixed term or when there is a break part-way through a tenancy. Rent increases and uninhabitable accommodation are other issues we come across regularly to name but a few,” the submission continued.
“The Residential Tenancy (Jersey) Law 2011, (RTL) brought many improvements in clarifying the residential housing position for both tenants and landlords in Jersey but with the passage of time we accept that more clarification and greater detail placed in leases is desirable including information about charges to balance protections for both tenants and landlords.”
It described the aim of the draft legislation as seeking “more settled and longer tenancies”, noting that this was something the charity “broadly” agreed with.
It also said that: “In terms of the proposed standard treatment of rent increases, we support the proposal that rent should continue to be reviewed in line with RPI with annual reviews with a cap and for rent set at the lower figure, and for two months’ notice to be given before the increase takes effect.
“We suggest that the size of the cap should be reviewed periodically to ensure that it is still reasonably aligned with RPI.
“We note that one of the available exceptions proposed to the standard rent increase route (which tenants are able to appeal at the Rent Tribunal) is that landlords can request a tenant for an increase of rent which is higher than the statutory limit (RPI/Cap) if the current rental has fallen behind market rent.”
Citizens Advice described this exception as “useful where landlords in hardship would otherwise decide to sell properties”.
It also highlighted the importance of “choosing the right complement of members” for the Rent Tribunal and suggested that “awareness presentations” for interested parties – including landlords, tenants and property agents – be arranged if the draft legislation is adopted.