Overview of the key proposals
If the Draft Residential Tenancy (Jersey) Amendment Law is implemented in its current form, rent increases would be limited to once per year, with landlords required to give at least two months’ notice. Rent controls linked to inflation would limit rises, with specific exceptions in cases where the landlord has made significant improvements to the property that benefit the tenant, or where the rent has fallen well below current market rates. To help manage disputes about rent increases, an independent Rent Tribunal would be established.
The draft legislation also introduces new requirements around tenancy structures. Fixed-term tenancies would default to periodic tenancies after the initial term, and tenants would be allowed to end a tenancy with just one month’s notice, without having to give a reason. Landlords, meanwhile, would be able to serve shorter notice periods in specific situations such as unforeseen personal need for the property or tenant misconduct.
Landlords would be required to provide information on the rents they charge and to include details of any additional fees or charges in the agreement at the start of each tenancy. They would also be required to insure their properties to cover any reasonable risk, loss or damage. Furthermore, if a landlord is found to have given false reasons for ending a tenancy, they could face criminal penalties.
Rent controls are insupportable
Propertymark has consistently campaigned against rent controls in all the UK nations. The introduction of inflation-linked rent control fails to account for rising costs faced by landlords, and artificially suppressing rental prices has the knock-on effect of devaluing landlords’ properties, making owners more likely to reduce spending on maintenance and improvements, bringing down the quality of the homes available.
Landlords who cannot cover their costs under controlled rent rules will choose to sell, creating or worsening an imbalance between supply and demand in the PRS. People looking for a rented home are more likely to be forced to rent more expensive properties outside of the controlled area or accept a lower standard of accommodation.
When Cost of Living measures were in place in Scotland, a survey of Propertymark members revealed that 100% found landlords more inclined to raise rents between tenancies. The result of this was that Scotland experienced average rent rises comparable to London between April 2022 and April 2023, significantly more than other areas of the UK.
The best way to achieve universal adequate housing is by raising standards, and developing closer working relationships between local government, landlords, and their agents, rather than adding further financial hardship to landlords already under strain from unprecedented costs.
Fixed terms benefit everyone
As with our lobbying on the Renters’ Rights Bill in England, we strongly argue that fixed term tenancies allow security of tenure for the tenant and a guarantee of rent payments for the landlord. Moving away from this system undermines landlords' ability to plan for the long term, potentially creating more instability for all parties through frequent renegotiations and uncertainty.
Additionally, for tenants with low income or poor credit history, the fixed term allows a guarantor to be confident about the length of time they are signing up to support them.
Details needed to flesh out plans
We have asked the Environment, Housing and Infrastructure Panel to provide more detail the rules around ending tenancies. The present version is inconsistent, particularly regarding how notice periods differ depending on tenancy length. The proposed “one-off” nature of fixed-term tenancies, which must convert to periodic at the end of the initial term, also raises questions about tenant security and landlord flexibility.
More detail is also needed on the accessibility and cost structure of the new Rent Tribunal, including whether it will be free for users.
Propertymark’s recommendations
To ensure reforms are successful and proportionate, we believe the States Assembly must first assess how well existing rules are being enforced. There is little value in introducing new laws if current ones are not working effectively. Guidance for both landlords and tenants must also be reviewed and improved where necessary, to support compliance and understanding.
In parallel, Ministers should examine the full impact of taxes and costs on landlords, ensuring they are not being discouraged from entering or remaining in the market. The current tax environment, particularly the three per cent stamp duty surcharge introduced in 2023 for rental property purchases, is already deterring investment, and these reforms risk compounding that problem.
Additionally, we recommend that any new rent data collection should capture not only the amount of rent charged but also the reasons for increases or decisions not to raise rent, so that future policies are based on a stronger evidence base.
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.
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.
