Propertymark has called for key revisions to Jersey’s draft Residential Tenancy Amendment Law, warning that aspects of the proposed reform could unintentionally damage the island’s fragile rental market.
The changes, currently under review by Jersey’s Environment, Housing and Infrastructure Scrutiny Panel, are intended to fulfil the Government of Jersey’s 2024–26 Common Strategic Policy.
That policy promises more affordable homes and greater confidence in the rental sector, with reforms aimed at improving protections for tenants while preserving landlord rights.
Under the draft law, rent increases would be limited to once annually, with at least two months’ notice.
INDEPENDENT RENT TRIBUNAL
An independent Rent Tribunal would be established to settle disputes, and fixed-term tenancies would be abolished in most cases, defaulting to periodic agreements with just one month’s notice required from tenants.
Additional proposals include mandatory disclosure of rent and fees in tenancy agreements, insurance obligations for landlords, and criminal penalties for landlords who knowingly provide false reasons for ending a tenancy.
Propertymark welcomed several elements of the draft, including improved fee transparency, minimum insurance standards, and the creation of a redress mechanism. However, it raised significant concerns about the removal of fixed-term tenancies and the introduction of inflation-linked rent controls.
UNINTENDED CONSEQUENCES
Gill Hunt, Propertymark’s Regional Executive for Jersey and owner of Hunt Estates, says: “These changes risk unintended consequences.
“There is real uncertainty around the impact of scrapping fixed-term leases, especially for landlords who rely on predictable rental income.
“If the balance tips too far, it may deter investment and reduce the supply of rental properties, which would ultimately drive rents up.”
RENT CAP WARNING
Propertymark also warned that the inflation-linked rent cap could backfire. By discouraging new entrants to the market, especially following the introduction of a 3% stamp duty surcharge for investment properties in 2023, supply could tighten further, increasing pressure on rents.
The organisation also called for greater clarity around how the Rent Tribunal would function – particularly whether it would be free to access for both landlords and tenants – and questioned the rationale behind allowing fixed-term leases only as a one-time exception.
BETTER ENFORCEMENT
Timothy Douglas, Head of Policy and Campaigns at Propertymark, urged the Minister for Housing to focus on better enforcement of existing legislation, evaluate the impact of taxation on landlord behaviour, and consider redress schemes such as those operating in the UK.
He says: “Reforms must be fair and evidence-based. Otherwise, well-meaning legislation may drive up costs for both landlords and tenants, reducing the very affordability it seeks to achieve.”
