Warnings of a ‘doomsday’ exodus of landlords from the private rented sector in Jersey following the island’s new proposed rent controls have been rejected by the island’s housing minister.

Sam Mézec (main image) told members of the States Assembly that the proposed rent cap was “as moderate as you can possibly get”, and was needed to protect tenants. The new rules would limit rent rises to once a year, and cap them at inflation (RPI) or 5%.

Renters would also be able to challenge rent hikes through a new Rent Tribunal.

If landlords are exiting the market, those homes don’t disappear into thin air.”

“If landlords are exiting the market, those homes don’t disappear into thin air,” Mézec said.

“They can be bought by other landlords who are perfectly happy to deal with these proposals, or they can be bought by people who are aspiring to own their own property that they live in.”

He made the comments during a hearing of the Environment, Housing and Infrastructure Scrutiny Panel, the Jersey Evening Post reports.

Evidence

Panel chair Hilary Jeune pointed to “considerable evidence” from members of the public, local organisations and key stakeholders “that the proposed rent cap could negatively affect the private rental market, potentially leading to a reduction in rental housing supply”.

But Mézec stressed transitional measures would soften any effects of the changes for several years.

“Before the full brunt of the proposals are felt by some landlords, that’s going to take years, in some instances, for that to be the case.

I simply don’t believe the doomsday prediction.”

“So I simply don’t believe the doomsday prediction that there’s all of a sudden going to be a massive spike in homes on the market, especially when we look at the state of the market at the moment where house prices, particularly for small homes, have come down in recent years by the biggest amounts that they have since records began,” he said.

Main picture: Jersey Evening Post

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