A former Bailiff and backbench politician has criticised proposed overhauls of Jersey’s rental law as “misconceived” and “ideologically driven”.

Housing Minister Sam Mézec submitted plans to overhaul Jersey’s Residential Tenancy Law earlier this year.

If approved by the States Assembly, the draft legislation 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.

But Deputy Philip Bailhache – who in his declaration of interests lists four properties, of which two bring in an income – has lodged “substantial  amendments” to the Housing Minister’s plans.

The Minister’s amendments are ideologically driven by a conviction that the private rental sector is inherently undesirable

Deputy Philip Bailhache

He explained that his amendments “are  substantial  because  most  of  the  Minister’s amendments are misconceived and potentially very damaging to the private rental sector and ultimately to Jersey’s economy”.

He added: “The Minister’s amendments seek to impose stringent new controls on the private rental sector, but little evidence is offered of the need for such controls.

“The Minister’s amendments are ideologically driven by a conviction that the private rental sector is inherently undesirable.

“The Minister does not appear to be concerned that these measures are likely to drive some landlords out of the market, thereby creating an even greater shortage of rental property than currently exists and driving up rents.”

In his declaration of interests, Deputy Bailhache lists four properties owned by himself and his wife. One of them is his home and at least two bring in an income.

What is Deputy Bailhache trying to get rid of?

Deputy Bailhache is trying to remove caps on rent increases, the Rent Tribunal, limits on periodic tenancies, limits on evictions, and civil penalties for landlords.

Deputy Mézec’s proposals include limits on how much rents can be increased: his proposals limit increases to RPI (and cap them at 5%), set a one-increase-per-year limit, and impose at least two months’ notice. Larger increases would be allowed if there has been a refurb or if the rent has fallen “significantly behind” the market.

But Deputy Bailhache claimed the figures showing that 64% of renters found it difficult to meet the cost of housing “is a consequence, not of landlords’ rapacity, but of incomes failing to keep pace with the cost of living”.

He said that the 5% cap on rent increases would effectively be a “subsidy for all tenants” at the “expense of landlords”.

“That is unfair,” wrote Deputy Bailhache.

“Landlords’ expenses on repairs and renewals, and indeed generally, are not capped at 5% during periods of high inflation.

“Many landlords with limited means rely upon rents to supplement their income. Not all landlords are faceless corporations.”

Not all landlords are faceless corporations

Deputy Philip Bailhache

The former Bailiff said that Deputy Mézec’s proposed Rent Tribunal would “introduce a new form of expensive bureaucracy” and would suffer the same fate as the old rent tribunal, which hasn’t been operating in several decades.

Deputy Bailhache also criticised the plans to force fixed-term leases to be followed by open-ended tenancies, stating that this promotes “considerable interference with the contractual freedom of landlord and tenant to make their own arrangements”.

“Why should their contractual freedom be interfered with in this way?” he asked.

Deputy Bailhache said that the “situation is worse” for landlords, who wouldn’t be able to end a tenancy for reasons that aren’t covered.

For example, he said: “Suppose an elderly couple with a ‘granny’ flat forming part of their property find the behaviour of their tenant unacceptable even if it is neither illegal nor a nuisance as defined. People living near each other do sometimes fall out. Is it ‘fair’ that the elderly couple should be stuck for ever with a tenant living in their property who in their view is behaving unacceptably?”

Why does he oppose the changes?

Deputy Bailhache pointed to “one of the fundamental principles of Jersey contract law”. ‘La convention fait la loi des parties’ means the agreement makes the law between the parties, he explained.

“Interfering with private contractual relationships needs justification,” said Deputy Bailhache.

He also claims to be standing up for landlords, arguing that rented properties “would no longer be the property of the owner”, including granny flats.

The former Bailiff argued that it was unfair for tenants to have a “‘right’ to possession” which would override “the landlord’s right of ownership”.

Good tenants, he said, are “very unlikely to be called upon to vacate the property”, and described long-term tenants as “gold dust” for landlords.

The Minister’s arguments that tenants are left vulnerable to revenge evictions or being evicted at any time without reason are unfounded, he said.

Deputy Bailhache also said that these measures could drive some landlords out of the market, creating a greater shortage of rental property and driving up rents.