Propertymark has put forward recommendations to improve Jersey’s Draft Residential Tenancy Amendment Law, which is under review by the Environment, Housing and Infrastructure Scrutiny Panel.
The law is being updated to meet the Government’s goal of more affordable homes and better security for both tenants and landlords.
The draft rules would restrict rent increases to once a year, with landlords needing to give at least two months’ notice.
Landlords who have made substantial improvements or those with rents well below market rates could be exempt.
There are also plans for an independent rent tribunal to deal with rent increase disputes.
Fixed-term tenancies, normally lasting one to three years, would be removed except for a single initial period, with all new tenancies set to become periodic by default.
Tenants could leave with one month’s notice and no reason needed.
Additionally, landlords could use shorter notice periods in cases like personal need or serious tenant misbehaviour.
Landlords would have to report rent levels when renewing the biannual rented dwelling licence and list any extra fees or charges at the start of a tenancy.
They would also need to insure their properties against reasonable risks.
Criminal penalties would apply if landlords give false or misleading reasons for ending a tenancy.
Propertymark said some areas of the draft law would improve conditions and security for renters, such as more transparency on fees and mandatory buildings insurance.
But the organisation raised concerns over rent control linked to inflation, warning that this could push landlords out of the sector, reduce supply, and make rents less affordable.
The extra 3% Stamp Duty for new landlords since January 2023 was also flagged, as these costs are likely to be passed on to tenants through higher rents.
The removal of fixed-term leases could make income less certain for landlords.
Propertymark called for more consistency in notice periods for landlords, agents, and tenants.
The group also questioned why fixed-term tenancies would only be allowed once before switching to periodic, and asked for clarity on whether the rent tribunal would be free to use.
Propertymark suggested the Housing Minister should focus on enforcing current laws, reviewing existing guidance, considering the impact of taxes like Stamp Duty, and looking at property redress schemes similar to those in the UK.
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.”
