Landlords could be left with “significantly” reduced flexibility in managing their tenancies – and less power to recoup “ever-increasing” costs – if sweeping reforms to the island’s residential tenancy legislation are approved next week, according to the Jersey Landlords Association.
The JLA Committee made the comments in an email to its members, ahead of the States Assembly’s impending vote on Housing Minister Sam Mézec’s plans to overhaul Jersey’s Residential Tenancy Law.
If approved, the new rules 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 and limiting the use of short fixed-term contracts.
Scrutiny’s report shines a light on the lack of any clear data or documented trend about ‘revenge evictions’ taking place in Jersey
JLA committee
The core of the proposals were initially debated in July, but States Members agreed to postpone any decision until this month – by voting in favour of a procedural move to refer it back to the Environment, Housing, and Infrastructure Scrutiny Panel for review.
The Panel, which had already been examining the proposed changes, was subsequently able to publish its report – drawing on an evidence-gathering process that garnered over 300 responses, and involved a number of public hearings with Deputy Mézec and various stakeholders such as Caritas Jersey, the Jersey Estate Agents Association and the JLA.
“Our view is that Scrutiny’s report shines a light on the lack of any clear data or documented trend about ‘revenge evictions’ taking place in Jersey,” the JLA Committee stated in its email.
“It also concludes that the potential market and wider economic effects of the rent stabilisation measures have not been formally assessed in preparing the proposals.”
The Panel also put forward a number of amendments and made various recommendations “to strengthen the legislation and clarify procedures”.
“One of the most helpful of the amendments is bringing back a ‘no fault’ notice period for landlords in a periodic tenancy,” the JLA Committee continued.
“Although the notice period would be 12 months rather than the current three months, which we think would still be a very substantial time to wait in a seriously deteriorating relationship (a pity this was not set at six months – a period that the JLA might have been able to agree with).
“Another helpful proposed amendment from Scrutiny is the proposed pushing back of a £10,000 fine for giving a false or misleading reason for ending a tenancy, for further consultation by the Minister.”
The Committee also noted an amendment from Deputy Jonathan Renouf, which would remove the proposed 5% cap on rent rises.
“However this would still leave landlords with rent controls capped at RPI, at a time when landlords’ costs have been significantly outpacing RPI for several years,” the Committee added.
“The concern here is perhaps less the RPI increases (which are relatively market standard) and more the fact that those RPI increases are more likely to be in place for a substantial time (if a landlord finds themselves in a periodic tenancy) because there will be less opportunities to move rents to market prices between tenancies.”
The Commitee contended that, overall, the amendments and recommendations would still leave landlords with “significantly less flexibility in managing their tenancies” and “significantly less power to recoup ever-increasing input costs, because open-ended tenancies and rent controls will remain”.
It urged its members to contact their local representatives to voice their concerns and to attend the States Assembly’s debate via the public gallery.