Tenants in social housing will have rent increases capped from 2019.
The new system would see rent increase annually by at least 2.5% and no more than 4%.
Social housing rents increase annually by RPI+0.75%. That will stay, but the level of RPI will be restricted to between 1.75% and 3.25%.
It follows the decision by Andium to hold off its increase this month because the Retail Price Index – which social housing rent is currently based on – rose more than expected.
If it had gone ahead, tenants would have faced an increase of 5.25%.
“I am pleased that, with the agreement of Andium Homes and the Treasury Minister, we have been able to introduce a cap on the level at which rents can be raised.
It was clear that with inflation at a higher rate than was expected this year, that the old system would not be fair for tenants who would have seen a 5.25% rise in rents.
“In line with the government’s strategic priorities, work will continue next year with a new Housing Policy Development Board to examine further work we can undertake to review our rent policies.” – Senator Sam Mezec, Housing Minister.
The date for rent adjustments has now been moved to the 1st of January, rather than 1st of October.
Government appoints new Havre Des Pas Lido operator
Jersey Chamber of Commerce 'aghast' at recommendation to reject Strive Hotel plans
Politician calls for Havre des Pas lido tender process to be scrapped
Two Jersey rowers make Team GB
Jersey's rate of inflation rises slightly over summer
Committee calls for Deputy Philip Ozouf's suspension
Baby sloth at Jersey Zoo orphaned as mother unexpectedly dies
DFDS contract reveals termination clause and performance penalties
