Plans to limit rent increases at the rate of inflation – and cap them at 5% – were questioned during a recent scrutiny hearing amid concerns over “increased volatility” driven by global events.

Housing Minister Sam Mézec discussed his plans for sweeping reforms to Jersey’s Residential Tenancy Law with the Environment, Housing and Infrastructure Scrutiny Panel yesterday.

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.

Pictured: Jersey’s inflation rate has gone above 5% on just a few occasions in the last two decades, including the large cost of living rise seen following Russia’s invasion of Ukraine in 2022 (Statistics Jersey)

Panel member Deputy David Warr asked if historical RPI data taken into account when formulating the cap – documenting the handful of instances where inflation has gone over 5% in the last few decades – was “still relevant in today’s climate”, citing “increased volatility” such as that seen with Russia’s invasion of Ukraine in 2022.

“I hope it is,” replied Deputy Mézec.

“Seeing the news about India and Pakistan last night is not particularly reassuring, for a whole host of reasons, unfortunately.”

Deputy Mézec continued: “Nobody knows what the future holds, nobody knows what the long-term future trends will be – we are not clairvoyant.”

Pictured: Housing Minister Sam Mézec discussed his plans for sweeping reforms to Jersey’s Residential Tenancy Law with the Environment, Housing and Infrastructure Scrutiny Panel yesterday.

But he added: “I don’t think that can be a good reason for not acting now in what we think might at least be the medium-term state of affairs, as they have been for all but two occasions in my lifetime.”

However, the Housing Minister noted that there was a clause in the proposed law that gave the States Assembly powers to make alterations.

“So it will not be a difficult thing to change if we find that world circumstances change and there is a clear need to adjust this – we will relatively easily be able to do that,” Deputy Mézec added.

His comments come just a few weeks after External Relations Minister Ian Gorst warned that global economic instability stemming from US President Donald Trump’s tariff regime could lead to increases in inflation and interest rates.