Landlords in New Jersey are being urged by their association to express their grievances before the discussions on rent regulation commence.
Jersey's Residential Tenancy Law: Scrutiny Panel Proposes Amendments and Reforms
The States Assembly is set to vote on Housing Minister Sam Mezec's plans to overhaul Jersey's Residential Tenancy Law next week. The proposed reforms, initially debated in July, have been referred back to the Environment, Housing, and Infrastructure Scrutiny Panel for review.
The Scrutiny Panel has put forward a number of amendments and recommendations to strengthen the legislation and clarify procedures. One of these proposals is the further consultation of a £10,000 fine for giving a false or misleading reason for ending a tenancy by the Minister.
Another amendment suggests bringing back a 'no fault' notice period for landlords in a periodic tenancy. However, the Committee stated that the amendments and recommendations would still leave landlords with open-ended tenancies and rent controls in place.
The Jersey Landlords Association (JLA) has expressed concerns about these proposed reforms. The JLA contends that the amendments and recommendations would leave landlords with "significantly less flexibility in managing their tenancies" and "significantly less power to recoup ever-increasing input costs".
The Committee also noted an amendment from Deputy Jonathan Renouf, which would remove the proposed 5% cap on rent rises. The Committee expressed concern that, even without the 5% cap, landlords' rent increases would still be capped at the rate of inflation (RPI), which has been outpacing landlords' costs for several years.
Tenants would be allowed to challenge unfair rent hikes through a new Rent Tribunal. The use of short fixed-term contracts would be limited, and if approved, the new rules would limit rent increases to once a year, capped at 5% or the rate of inflation (RPI), whichever is lower.
The Scrutiny Panel's report, published after an evidence-gathering process involving over 300 responses and public hearings, concludes that the potential market and wider economic effects of the rent stabilization measures have not been formally assessed. The report also highlights the lack of clear data or documented trend about 'revenge evictions' taking place in Jersey.
The Committee expressed a wish that the notice period for ending a tenancy in a seriously deteriorating relationship was set at six months instead of the proposed 12 months. The Committee urged its members to contact their local representatives to voice their concerns and to attend the States Assembly's debate via the public gallery.
If the proposed reforms are adopted, they would mark a significant shift in Jersey's residential rental market, aiming to provide more security for tenants while balancing the needs of landlords. The States Assembly's decision next week will shape the future of housing in Jersey.
