New housing legislation aimed at improving the safety of rental homes in Guernsey could prompt more landlords to leave the sector, according to the chairman of the Guernsey Landlords Association.
Jeff Guilbert said that between four and five landlords are already exiting the market each month, and the cost of complying with the new standards may accelerate that trend.
“The bottom line is we’re all running a business,” Guilbert said. “Our target return is 6% gross, but that’s becoming harder and harder to achieve.”
The new housing standards law forms part of broader efforts to address Guernsey’s ongoing housing challenges. It sets minimum requirements to ensure that rental properties are structurally sound, meet fire safety standards, and provide access to safe drinking water.
Under the legislation, landlords must:
+ Have electrical systems professionally tested every five years
+ Ensure oil and gas installations are inspected annually
Guilbert expressed concern about both the rising compliance costs and the limited availability of qualified professionals to carry out the necessary checks.
“Guernsey is a high cost for rental and that’s reflected because of the high cost of property,” he said. “All these things, if we have to implement them, are just going to push the cost up.”
He also argued that private landlords are being unfairly singled out by the regulations.
“It technically applies to the private owner-occupier. I don’t think any checks will be done on them.”
The Guernsey government has said the legislation is necessary to ensure all rental properties are safe and fit for habitation.
