Knowledge

Background

The Government of Jersey has approved a new scheme which will require Jersey landlords to obtain a licence for each private dwelling that they rent out.

A variety of health and safety obligations are already in force and applicable to residential landlords. In particular, the Public Health and Safety (Rented Dwellings – Minimum Standards and Prescribed Hazards) (Jersey) Order 2018 provides for the treatment of a number of prescribed hazards and minimum standards regarding:

• the detection of smoke;
• gas safety; and
• electrical safety.

The aim

The new licensing regime is not intended to enhance the existing health and safety obligations of residential landlords. Instead, the aim of the licensing system is to assist with the enforcement of existing health and safety standards and, indirectly, to improve the quality of rented accommodation in Jersey.

Which premises will require a licence?

A licence will be required for all rented residential dwellings (as defined in the Public Health and Safety (Rented Dwellings) (Jersey) Law 2018) which the owner rents out.

The meaning of dwelling includes houses and individual flats. However, exceptions will apply to lodging houses, tourist accommodation, nursing homes and care homes (which are subject to their own specific regulation). The scope of the licensing regime will include social housing providers, who will be required to procure licences for each of the properties they rent out.

The scheme will not apply to commercial properties.

Practicalities

A licence will likely cost £60 (per property) and will be valid for a period of two years. The licence will attach to the property itself. This means that the licence will transfer to the property's new owner in the event of a sale.

Renting out an unlicensed dwelling will be prohibited and could result in fines of up to £10,000.

It is anticipated that there will be a number of standard licence conditions, which will include a requirement that the licence holder notifies the Minister where:

• there is a change to the licence holder's contact details;
• a manager or agent's contact details change
• the emergency contact number changes; or
• the dwelling is no longer being used as a rental property;

and

• an obligation that the licence holder provide the occupier with a copy of the licence and a written explanation of how to raise a complaint concerning the dwelling within 28 days of the licence being issued or commencing.

Timeline

The Public Health and Safety (Rented Dwellings) (Licensing) (Jersey) Regulations 2023 (which will enact the regime) (the "Regulations") will come into force on 1 May 2024.

There is a grace period envisaged which allows landlords who already rent out their property (and who apply for a licence prior to 31 July 2024) to be granted their property's first licence without a pre-inspection taking place.

Impact

Whilst the health and safety obligations of landlords regarding the standard of their properties are not being enhanced, landlords will have an additional administrative burden under the scheme. If properties do not meet the required standards, then landlords may find that licences could be denied or revoked. Consequently:

• landlords will be unable to let out their property unless a valid licence is in place;
• landlords of non-compliant residential property could find that their property must be left vacant until it is brought up to the requisite standard; and
• landlords who do not comply with the Regulations may be fined.

It is worth noting that the Minister may still issue a licence if the property does not meet the minimum standards but that this would be subject to the necessary improvements being made by a specified date.

The licensing legislation comes into force as the Government continues to consult on the introduction of Jersey Energy Performance Assessments ("JEPAs"). Although the exact requirements of the JEPA regime are currently unknown, it is envisaged that the scheme will require that a valid JEPA is in place on the sale or letting of property. More information on JEPAs can be found in our briefing here.

The licensing system will facilitate the creation of an extensive database of rented dwellings in Jersey. That database will likely be useful in ensuring that residential landlords also comply with the JEPA regime when it is implemented.

Next steps

There is a short lead-in time before the Regulations come into force. Therefore, landlords (or property owners who are intending to let out their property) should:

• ensure that their properties comply with the minimum health and safety standards; and
• make an application to prevent either non-compliance with the legislation or the possible sterilisation of their property.

Existing landlords should apply for a licence as soon as possible (and in any event before 31 July 2024) to avoid the possible delays associated with a pre-inspection.

If you would like any further information, please get in touch with your usual Bedell Cristin contact or one of the contacts listed.