Politicians clash ahead of tenancy law debate

Sir Philip Bailhache and Sam Mezec have clashed over the rights of tenants and landlords

Jersey politicians on opposing sides of an argument around the rights of tenants and landlords have clashed ahead of a debate on changing the island's tenancy law.

The changes to the existing legislation put forward by Housing Minister Deputy Sam Mezec would enable tenants to challenge rent increases and there would be a limit on the use of fixed-term tenancies.

Deputy Sir Philip Bailhache, who is also a landlord, called the changes "fundamentally unfair" and lodged amendments to "delete" Mezec's proposals.

Currently there is no limit to how often and by how much a landlord can increase the rent on their property and tenants have no right to appeal any changes.

'Unnecessary bureaucracy'

Landlords can also issue a three-month notice period to evict a tenant without reason.

The proposed tenancy law would see changes including rent increases capped at 5%, limited use of fixed-term tenancies, and shorter notice periods for bad tenants.

Sir Philip called the changes "unnecessary bureaucracy".

"It's unfair on landlords to restrict their rent increases to 5% a year when inflation may be considerably higher and their own expenses of maintenance and renewals and so forth will not be capped at 5%," he said.

"I don't think it will make life better for tenants because it is true that rents are high but that is a reflection of the value of property in the island."

He added the changes could make landlords leave the market, reducing the number of rental properties and increasing rents.

Sir Phillip said members of the government who own properties for rent would be able to "look at the issue objectively".

'Lack of compassion'

Mezec said Sir Philip had not attempted to discuss his concerns about the law changes with him ahead of lodging his "ill-informed amendment".

He said: "It [his proposals] strikes the right balance of protecting landlords when the tenant is causing a problem, but [also] protecting tenants when it's the landlord causing a problem."

He added that increasing rents at times of high inflation was "enforcing hardship on tenants".

"Surely this is a burden that ought to be shared," he said.

"I think that it shows a lack of compassion and understanding for the experience of people who rent their homes in Jersey where it's already extortionately expensive compared to lots of other places in the world."

Patrick Lynch, from the charity Caritas Jersey, said people had come to the charity for advice after having up to 30% increases put on their rent.

"If those are limited then those ways of increasing rents that perhaps are not fair will be stopped," he said.

"That will be a benefit to the people who really just cannot afford those at the moment.

"As a result of viewing the legislation I think its very balanced for both sides."

'Difficult for landords'

Guy Morris of Jersey's Landlords Association warned a survey showed 70% of island landlords would consider selling one unit of their portfolio if the changes came in to force.

"It's going to make it really difficult for landlords to make ends meet in the future, he said.

"Landlords' costs have gone up by substantially more than the Retail Prices Index in recent years."

He added that changes included limiting rent increases to once a year were already being done by "most responsible landlords".

Later, politicians will have an in principle debate on whether the law should be changed.

The actual details of the law will be discussed in September, including Sir Phillip's amendments.