Some say they’re a sledgehammer to crack a nut, others say they’re too timid, but the Housing Minister argues they’re exactly what renters need… Deputy Sam Mézec’s plan to overhaul rental laws are probably Jersey’s most talked-about political balancing act right now, and everyone’s got a different idea of what ‘just right’ looks like.

The proposals, which include rent caps, extended notice periods, and limits on contract types, have been described as the “biggest overhaul” in more than a decade and will be voted on by States Members this summer.

Here’s how the debate is shaping up so far…

What is being proposed?

The reform package proposed by the Minister includes:

  • Rent increase limits of RPI or 5%, whichever is lower
  • Stricter rules on tenancy types
  • A new Rent Tribunal to hear disputes
  • Longer notice periods for tenants

 “Jersey has a housing crisis, and it affects people in lots of different ways, but in the rental sector, people we constantly hear from are have to suffer things that other countries wouldn’t allow,” Deputy Mézec explained.

“People can lose their homes for no reason or in revenge for trying to do the right thing for themselves. Lots of other countries don’t allow that, and the UK is about to ban it up there.

“Lots of countries have limits on what can be done with rent increases so that they are fair and proportionate. And Jersey hasn’t had that system for many years.

“We did have it in the past, and when we got rid of it, that coincided with the time where rents started going up really high. It doesn’t take a genius to work out what might have happened there.”

Rogue landlords… or confused ones?

But some feel the reforms are a sledgehammer to crack a nut.

Estate agents Gaudins said the real problem was not landlords being malicious, but often being unaware of their responsibilities.

“We believe that instances of wrongful rents and poor property maintenance in Jersey are more commonly the result of private landlords who are not fully informed about their legal obligations, rather than properties managed by professional letting agents,” the agency said.

They argued that focus should instead be on dealing with this – rather than seeking to impose larger-scale reforms that they feared might distort the market.

To back their argument, Gaudins pointed to multiple studies, including analysis by the Institute of Economic Affairs, which found that rent controls in other jurisdictions often result in fewer rental properties being available, poorer housing conditions and an increase in discriminatory practices.

Would there really be a landlord exodus?

The possibility was raised at All Island Media’s Question Time-style ‘Housing…crisis averted?’ event last week by Jersey Landlords Association Chair Guy Morris, who sought assurances from the Minister that his proposals “will not lead to a reduction in those much needed homes due to landlords leaving the market”.

Jersey Homes Trust founder Michael Van Neste MBE also expressed fears: “I understand that tenants should have decently maintained housing and that it should be affordable. But I’m worried that the sector will just wither away. And whilst it is withering away, the standard of accommodation people rent will gradually go down with it… I’m hopeful that the States will modify this proposal or reject it altogether.”

@bailiwickexpress

“It’s probably worse now than its ever been” With the ‘Housing… crisis averted?’ event coming up tomorrow, in the lead up, panel chair Fiona Potigny puts five quick-fire questions to Michael Van Neste MBE. Listen to the full interview wherever you get your podcasts by searching Bailiwick Podcasts🎙️

♬ original sound – bailiwickexpress

Broadlands director Harry Trower said that the private rental market shouldn’t be taken for granted, and that it already appeared to be contracting.

While the agency doesn’t have a “massive rentals book”, he noted that the number of rental properties under its management had decreased, and “a lot of landlords [are] coming to us looking to sell”.

But Deputy Mézec dismissed suggestions of a mass landlord exodus as “scaremongering” – referencing similar fears at the launch of the landlord licensing scheme, which he claimed never materialised.

Too soft?

But concerns about over-regulation weren’t held by everyone – Salvation Army Jersey co-leader Captain Alice Nunn said the proposals “do not go far enough” to protect tenants – particularly the most vulnerable.

She said more needed to be done to empower tenants to speak up when accommodation was unsafe or substandard, without fear of eviction.

Although the current landlord licensing scheme does require minimum safety standards and allows tenants to report issues to Environmental Health, Mrs Nunn said many were still “too afraid to come forward”.

What about a tenants’ redress scheme instead?

Gaudins put forward its own solution in a letter to the panel of politicians tasked with scrutinising the Minister’s proposals.

“Rather than imposing rent caps, which risk distorting the market and reducing housing supply, the government should focus on legislative reforms that require landlords to register with redress schemes or mandate that rental properties be managed through licensed property agencies,” the agency said.

They added: “This approach is supported by Propertymark’s ongoing advocacy, which emphasises the role of professional regulation in raising standards and protecting tenants. Additionally, a 2023 review by the UK’s Department for Levelling Up, Housing and Communities noted that jurisdictions with landlord registration and licensing schemes tend to see better housing outcomes and higher compliance rates.”

If there’s a housing crisis… is rent really the right area to be focusing on?

CEO of property finance solutions firm Tenn Capital, Matt Watson, described the rent reform plans as “well-meaning”, but argued that, if there are concerns about the quality, availability and affordability of homes in the island, the focus must surely be on increasing supply.

“The vast majority of landlords that I’ve ever met through my career are good, decent people. It is a small minority that muddy the water. So I think it focuses in the wrong area. If you strip a housing crisis back to its first principles, it’s a pretty simple problem: it’s a supply issue… And if you want to increase supply, you need to unlock the blockages that exist for building new properties.

“…You have to cut down the timeframe for people who are prepared to put put risk into a transaction to be able to deliver that. That is something that government can do – significantly reduce the time, significantly reduce the variance of response, to be able to give confidence to the developers, and allow them to get on and do what they do best.”

How likely is it that the Minister’s proposals will pass anyway?

It’s unclear at this stage whether the proposals will be supported by the Assembly and it’s understood that the plans have divided Ministers.

Deputy Mézec accepts that it will be difficult to convince everyone, noting that

Asked in a podcast interview whether his Ministerial colleagues would be supporting the plans, he responded: “Let’s be clear, there isn’t unanimous support for what I’m proposing because some people – and I think these people are deeply unreflective of what the public want – I think give far too much weight to the voice of the landlord that ultimately defends the interests of bad landlords and not the silent, decent majority who will be perfectly content with what I’m proposing. Some States Members are naive in that sense.”

@bailiwickexpress

With the ‘Housing… crisis averted?’ event coming up next week, panel chair Fiona Potigny caught up with Housing Minister @Sam Mézec – Reform Jersey about his plans for the greatest overhaul to rental legislation in a decade. Listen to the full interview wherever you get your podcasts🎙️

♬ original sound – bailiwickexpress

He continued: “That’s why it took in the previous term of office multiple failed attempts to get in the licensing regime for landlords which basically said you have to make sure the home is safe to live in before you let someone live in it, a really basic concept… We then had an election, some of the culprits behind that defeat were booted out and the new Assembly voted in favour. It’s in force now, and it’s great.”

Listen to our ‘Housing…crisis averted?’ podcast mini-series here.

Members of the public can still share their views on the draft legislation by emailing: scrutiny@gov.je.

The panel will hold a public hearing with the Housing Minister on 7 May.

The survey is being translated into Portuguese, and there will be two sessions with the Portuguese community with a translator able to assist the panel.

Panel members will also be in the Central Market at lunchtime on 1 May to listen to the views of the public.