How can Islanders afford such high rents?
Tuesday 23rd June 2009, 2:59PM BST.
From William Rennox.
I KNOW I am not the only one who feels aggrieved at the extortionate rents charged to tenants of all types on this lovely Island.
It is almost as if we are workers living in days of old – see the Truck Acts UK – with so much of our wages going on essentials such as food and high rents that there is little left over to spend on anything else.
I think it would be fair to say that many tenants working outside the finance industry (and even some within) are being screwed by unscrupulous and greedy landlords, with the result that an unacceptable portion of their pay is going on rent. Heaven knows how those earning the minimum wage manage to cope.
Other countries have introduced fair rent acts to ensure that private rents are kept at an affordable level, so why can’t Jersey?
The Island’s rents are on a par with London’s, while Jersey wages are, for the most part, not. Living in an Island naturally has an adverse impact on commodity prices, which applies to all islands, but Jersey seems to be going out of its way to create a ‘them and us’ situation, with the wealthy being seen as more valuable than everyone else and, as has been reported in the JEP, being given preferential tax arrangements.
I realise that there are many wealthy people residing on this Island, and that for the most part they are decent good people who do what they can to help the community, and that many working in the finance industry do earn high incomes, but this does not apply to the majority of people living on this Island.
Let us have a fairer system with everyone subject to the same tax regime and no preferential treatment given to the 1(1)K immigrants. They are the ones who can easily afford to pay their fair share of taxes, and if they don’t like it, then good riddance.
And as regards UK based retailers not paying tax on their Jersey income, that beggars belief. Why the locally-based retailers have not stormed the States Chamber surprises me. Under the zero-ten corporate income tax reforms which take effect from next year, foreign non-finance firms, including big retailers like Bhs and Boots, will pay no tax to the States.
The locally owned Voisin’s department store will have to pay tax on profits here as personal income under zero-ten, but de Gruchy will not pay any tax here because it owned by the Ulster Stores Group. Instead, its tax will be paid in Northern Ireland.
1 Claremont,
Bagatelle Road,
St Helier.
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Easy answer to the reason this will never change is that probably over half of the states members are landlords.
Why would they pass a law that resticts the extra income they get?
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In responding to Mr Rennox, I would firstly like to say that I am a private landlord, and in response to #1 above, I am not a States Member.
The property which I let out is a three bedroomed house and the rental is on a par with the maximum rental that the Housing Department would charge for such a property. There are no restrictions on tenants, they can have children, pets within reason, and also sub let a room to a non qualified person.
In exchange, I expect that the tenants pay the rent on time, look after the property, and let me know as soon as possible if any problems arise which are my responsibility as land lord.
Total rental void period during the past 5 1/2 years amounts to three weeks, and in monetary terms, there was an outstanding issue with a former tenant over £400 that was owed, which I wrote off rather than persuing through the Petty Debts court.
I am unsure what Mr Rennox is trying to say by making comparisons with London. Is he referring to Holland Park/Chelsea,(Rentals of £90,000 p.a.) or the home counties which are comparable with what I charge anyway. And while London (City) earnings may be higher, so are the living costs such as the commuting expenses of getting in and out of the capital.
Yes there may be ‘geedy landlords’ on this island, but the rental market is active, and being ‘greedy’ invariably results in tenants not renewaing tenancies, defaulting on rent and excessive periods when the proerty is vacant resulting in no rental return for the land lord.
As a land lord, I have to have faith in my tenant that they will meet their obligations. Likewise, my tenant needs to feel that I am an honourable and trusted person who they can deal with.
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There certainly are some very greedy landlords in Jersey who apart from charging extortionate rents expect people to live in less than pleasdant conditions.
However, having never been able to afford to purchase I have always had to rent, and have to say that there are also some very fair and good landlords. We have always looked after any property with pride and respect, rent has always been paid on time, and we have therefore had a mutually beneficial relationship with our landlords. However I am amazed and sometimes disgusted with the disrespect and lack of care that some tenants show to their accomodation.
There are certainly two very different side to this situation.
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