A RISE in the number of non-residential landlords means more money is being ‘funnelled’ out of the Island, the former housing minister has said.
Senator Sam Mézec spoke out after it was revealed that 740 non-resident and 6,000 resident taxpayers declared rental income in 2019. In 2012, the figures stood at 400 and 4,070 respectively.
The information was published by Treasury Minister Susie Pinel, in response to a recent written question from the Senator.
He said: ‘The most up-to-date data we have is still two years old, but if we assume that the trend has continued then we are looking at the number of non-resident landlords doubling across a ten-year period.’
He said this meant more money was being ‘funnelled’ out of the Island, while simultaneously depriving first-time buyers of the chance to purchase a property.
‘We do need more properties for first-time buyers as well as for renting, but if a property is not going to be used for a first-time buyer than it should at least go to a resident landlord – that way the money will stay in Jersey,’ said Senator Mézec.
In her response, Deputy Pinel noted that the data does not include income from casual letting, such as lodgers, and the term ‘taxpayer’ may refer to a married couple or civil partnership.
‘A single source of property income may be counted against more than one taxpayer where the rental income is shared – for example, between siblings,’ she said.
Senator Mézec said: ‘Part of the problem is that we do not have more data on the number of properties being bought and who is buying them.
‘It may be the case that someone who lived in Jersey retired and moved away from the Island. ‘However, we do hear stories anecdotally of people arriving at the airport, buying up large amounts of property and then getting a taxi back to the airport – and that definitely needs to be stopped.’
St Brelade Constable Mike Jackson, who chairs the Environment, Housing and Infrastructure Scrutiny Panel, said: ‘There are situations where people are outside the Island for whatever reason – maybe their job has taken them away, maybe they went on sabbatical or a long holiday and wanted to rent out their property, there could be many different reasons and there is nothing wrong with that. I think the figures need to be further understood before taking a point of view.’
He added that he was ‘not against’ Senator Mézec’s call for further research.
