PROPOSALS to cap rent increases and phase out fixed-term leases could end up hurting renters rather than helping them, a Jersey property firm has warned.
Gaudin & Co made the comments in a letter to a panel of politicians currently reviewing a series of sweeping reforms to Jersey’s Residential Tenancy Law.
The proposed changes have been put forward by Housing Minister Sam Mézec in a bid to “balance the rights and responsibilities of tenants and landlords and introduce more clarity”.
However, in its submission to the Environment, Housing and Infrastructure Scrutiny Panel, Gaudin & Co warned that the plans risk “undermining the very outcomes they seek” if they are not “implemented with precision and market understanding”.
The new rules, if approved by the States Assembly this summer, would stop landlords from raising rent more than once a year, limit rent increases at the rate of inflation (RPI) and cap them at 5%, and allow tenants to challenge unfair rent hikes through a new Rent Tribunal.
The proposals, which have been described as the “biggest overhaul” of residential tenancy legislation in over 10 years, also limit the use of short fixed-term contracts and extend notice periods for tenants.
The property management company wrote: “While the proposals aim to create a fairer rental sector, they risk undermining the very outcomes they seek if not implemented with precision and market understanding.”
“Poorly calibrated rent control measures can lead to supply reduction, discrimination, and reduced property standards.”
The submission references multiple studies, including analysis by the Institute of Economic Affairs, which found that rent controls in other jurisdictions often result in fewer rental properties being available, poorer housing conditions and an increase in discriminatory practices.
The firm also questioned the idea of removing fixed-term leases, warning this could reduce clarity and confidence for landlords, especially smaller-scale or “accidental” ones who rely on flexibility for personal or financial reasons.
They continued: “Strategies such as increasing housing supply, offering targeted subsidies, and encouraging responsible landlord behaviour may prove more effective in creating a fair and functional rental market.”
The letter also suggested that efforts to raise standards should focus on ensuring landlords are properly informed and regulated, rather than adding caps that risk affecting the market.
“Instances of wrongful rents and poor property maintenance in Jersey are more commonly the result of private landlords who are not fully informed about their legal obligations, rather than properties managed by professional letting agents,” they said.
The firm backed a greater focus on registration and licensing of landlords, suggesting this approach would better protect tenants without forcing landlords out of the market.
“Rather than imposing rent caps, which risk distorting the market and reducing housing supply, the government should focus on legislative reforms that require landlords to register with redress schemes or mandate that rental properties be managed through licensed property agencies.
“By encouraging professionalism and accountability, Jersey can better safeguard tenant rights without undermining investment in the rental sector.”
Instead of capping rents, the firm said the government should focus on expanding housing supply, offering targeted subsidies, and improving landlord oversight through licensing and registration.
They wrote: “Policymakers must consider alternative approaches that address housing affordability without the negative side effects associated with rent controls.
“Strategies such as increasing housing supply, offering targeted subsidies, and implementing measures to encourage responsible landlord behaviour may prove more effective in creating a fair and functional rental market.”
The warning follows a live panel discussion hosted by All Island Media, where property professionals and housing campaigners clashed over the impact of the proposals.
The impact of the Housing Minister’s proposals also came under scrutiny at a heated public panel event hosted by All Island Media last week, with warnings they could drive landlords out of the market, and calls from housing campaigners for them to go even further.
Broadlands director Harry Trower said that while the agency doesn’t have a “massive rentals book”, the number of rental properties under its management had decreased, and “a lot of landlords [are] coming to us looking to sell”.
Michael Van Neste, the former head of social housing provider Jersey Homes Trust, also voiced concern: “I understand that tenants should have decently maintained housing and that it should be affordable. But I’m worried that the sector will just wither away.”
“And whilst it is withering away, the standard of accommodation people rent will gradually go down with it… I’m hopeful that the States will modify this proposal or reject it altogether.”
Jersey Landlords Association chairman Guy Morris challenged Deputy Mézec directly, asking what assurances he could offer that the plans “will not lead to a reduction in those much-needed homes due to landlords leaving the market, as is happening currently in the UK”.
He also raised alarm about open-ended tenancy proposals and the proposed cap on rent increases.
Deputy Mézec responded that the reforms were “tried and tested” in other jurisdictions, and aimed to introduce “equity” into the rental market.
He dismissed suggestions of a mass landlord exodus as “scaremongering” – referencing similar fears at the launch of the landlord licensing scheme, which he claimed never materialised.
“A fact of the matter is that the renting experience in Jersey is rubbish compared to other places nearby to us,” he said.
“If we want to say to young people who are struggling enough to buy a home, ‘Forget that aspiration – it’s too expensive for you’ – then the least we can do is offer them security and fairness while they rent.”
Not everyone on the panel felt the reforms were too harsh.
Captain Alice Nunn, co-leader of the Jersey Salvation Army, said the proposals “do not go far enough” to protect tenants – particularly the most vulnerable.
She said more needed to be done to empower tenants to speak up when accommodation was unsafe or substandard, without fear of eviction.
Although the current landlord licensing scheme does require minimum safety standards and allows tenants to report issues to Environmental Health, Mrs Nunn said many were still “too afraid to come forward”.
Residential Tenancy Laws
Members of the public can still share their views on the draft legislation by emailing: scrutiny@gov.je.
The panel will hold a public hearing with the Housing Minister on 7 May.
The survey is being translated into Portuguese, and there will be two sessions with the Portuguese community with a translator able to assist the panel.
Panel members will also be in the Central Market at lunchtime on 1 May to listen to the views of the public.
