Rising rental costs could be capped - housing chief

The possibility of introducing a rent cap in Guernsey will be looked at by the committee for housing.

Committee president Deputy Steve Williams admitted he was concerned by the rising cost of renting a property, with latest figures showing the average rent was £2,112 per month.

Rents in the island have risen by more than 50% in the last five years and at the end of September were 1.8% higher than the end of June and 2.8% higher than the end of September 2024.

Some politicians have blamed the impact of States relocation grants for rent increases.

In an update to States members, Williams said he had spoken to Jersey's housing minister about the rent caps that were agreed there earlier this year.

Williams said: "It's an interestingly complicated and sensitive area, rent capping and there are lots of examples around the world, I think, where it's not going terribly well. However, it is something we want to have a look at.

"We don't want to scare the rental market in terms of scaring lenders away, however we are concerned about affordability, so it's something we will certainly look to address and see what possibly we can do whilst trying to tread as carefully as we can within the market."

Under questioning from Deputy Andy Cameron, Williams said his committee had already investigated using modular housing to get houses built during the current political term.

Williams said it was likely the only way to get a development started and completed this term would be through modular construction.

He admitted the committee had been in conversation with the States Property Unit about a "pilot project" using modular methods on a government owned site.

"We've got more work to do with them in terms of assessing the viability of the business plan and then bring something forward and we're also canvassing around for suitable locations.

"So yes, I personally think it's the only way we're going to make some sort of hit on the market in terms of trying to ease the pressure in the market and release the logjams."

In his update to States members, Williams said the committee was exploring how unused accommodation such as vacant dowry units could be used for housing as a short-term measure.

A dowry unit is housing which often has a historical agreement relating to its sale or use.

Williams said his committee was "considering covenants on land to lock in discounts for first-time buyers - ideally selling properties at 75% of market value."

He said he had also investigated ramping up property tax rates to encourage owners to bring empty properties back into use.

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