The island’s residential tenancy law has been in place since 2011.
The draft amendment law has been proposed by the Minister for Housing Sam Mézec with the intention of delivering on the Common Strategic Policy (2024-26) aim of providing ‘more affordable homes for Islanders and more confidence for the rental sector’ and improving ‘tenancy arrangements for both tenants and landlords.’
Proposed changes include rent increases restricted to once per year with at least two months' notice; the creation of an independent Rent Tribunal; periodic tenancies by default with one month's notice from tenants to withdraw; and shorter notice periods available for landlords under certain circumstances, such as serious tenant misbehaviour.
Landlords would also be required to give information on the rents they charge on renewal of the biannual Rented Dwelling Licence and to include details of any extra fees or charges in the agreement at the beginning of each tenancy, and would face criminal penalties if they knowingly or recklessly issue false or misleading reasons for stopping a tenancy.
Propertymark wants to see 'enhanced conditions' for renters and improved security and affordability in the private rented sector, but warned that the proposed reforms must be enacted in a fair and balanced manner.
Specifically, the professional body has concerns with ‘inflation linked rent control’, which it says is 'highly likely' to force landlords to remove property from the private rented sector, reducing supply.
Propertymark also said the removal of fixed term leases may increase uncertainty for landlords as they may not be sure how much income they will receive within a certain timeframe for a tenancy.
Propertymark has suggested that there needs to be more consistency in time periods for landlords, agents, and tenants - such as fixed-term tenancies still being available but only in certain circumstances - and clarity over whether the independent tribunal will be free to use for both landlords and tenants.
Propertymark has recommended that the Minister for Housing’s should consider effectively enforcing existing laws and analysing them effectively, assessing the role of new reasonable guidance in assisting both landlords and tenants, reviewing all costs and taxes impacting private landlords like stamp duty, and exploring boosting standards through property redress schemes similar to the ones available in the UK like The Property Ombudsman and The Property Redress Scheme.
Gill Hunt, Propertymark Regional Executive for Jersey, said:
“While the Minister for Housing’s aim of providing more affordable homes for the people of Jersey is admirable, it is important that existing laws are analysed effectively alongside the role of current guidance in helping both landlords and tenants, and the rate of taxation impacting private landlords. There is also much confusion around the changes to fixed-term tenancies, and the negative impact these measures could have on the limited supply of homes. Propertymark looks forward to working with the Government of Jersey in delivering legislation that can improve the lives of Jersey’s islanders without negatively impacting the housing market here.”
Timothy Douglas, Head of Policy and Campaigns at Propertymark, said:
“Any reforms to the private rented sector in Jersey must be done in a fair and balanced way so legislation does not increase costs for both landlords and tenants. Whilst there are several proposals that will help deliver better conditions and more security for renters, concerns remain. These include rent control, a reduction to the requirements for fixed term leases and the knock-on impact of recent tax changes on the investment appetite of new and existing landlords.”
