Around two-thirds of Jersey Landlords Association members are “considering selling some rental properties” if plans for sweeping reforms to Jersey’s Residential Tenancy Law are implemented.
In a written submission to the Environment, Housing and Infrastructure Scrutiny Panel – which is currently reviewing Housing Minister Sam Mézec’s proposed changes to Jersey’s legal framework for residential tenancies – the JLA said a survey of its members had indicated “widespread concern”.
If approved by the States Assembly this summer, 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.
If we shrink the private rental sector we risk getting to serious issues in terms of, I’d go so far as to say homelessness, but also the availability of decent property to rent in Jersey
Jersey Landlords Association chair, guy morris
Speaking during a hearing with the panel this morning, JLA chair Guy Morris said the Association – which has over 320 members – believed some aspects of the proposed legislation, such as requiring landlords to have insurance, seemed “relatively reasonable”.
But he stressed that other policies, such as rent controls and open-ended tenancies, were “more of a concern for the private rental sector in Jersey”.
“We certainly support the principles of more clarity, better relationships between landlords and tenants – we think parts of the law go a fair way to achieving that,” he said.
“However, I think it’s fair to say that we think that the balance is tipped too far in favour of tenants in this and there’s multiple unintended consequences that will flow from that,” Mr Morris continued.
“We think a much better way of doing things, would be to produce guidance on tenants’ and landlords’ responsibilities in the market and guidance on how tenants and landlords should conduct themselves.”
The panel also acknowledged the JLA’s written submission, which stated that surveys of JLA members “indicate widespread concern” and that: “Over 90% oppose the reforms, with
almost 70% considering selling some rental properties if implemented.”
Mr Morris told the panel that Jersey had a “vibrant” private rental sector with almost 15,000 homes, adding that the “vast majority” of relationships between landlords and tenants were “pretty good ones”.
But he warned: “If we shrink the private rental sector we risk getting to serious issues in terms of, I’d go so far as to say homelessness, but also the availability of decent property to rent in Jersey.”
