Island ‘playing catch-up’ on rent deposit scheme
A NEW rental deposit scheme to protect landlords and tenants has moved a step forward in the wake of the Sarnia Estate Agents collapse.
Environment & Infrastructure has confirmed a policy letter is now being drafted.
Deputy Barry Brehaut is ‘100% supportive’ of a rent deposit scheme following the failure of Sarnia Estate Agents and subsequent fears for the loss of many islanders’ deposits.
As a member of the former Housing Department, Deputy Brehaut previously campaigned for a rent deposit scheme and recently spoke to Jersey senator Sam Mezec about that island’s scheme, called MyDeposit.
‘The recent high-profile Sarnia Estates failure once again drew attention to the absence of a scheme locally,’ he said.
‘A rent deposit scheme ensures a third party holds the deposit, so if a company fails the deposit is not lost – though it’s important to note the failure of a business is a separate issue in itself.’
Deputy Brehaut said: ‘Over many years I have tried to assist young families and individuals who would like to move out of the accommodation, but have struggled to get their full deposit returned.
‘They need their deposit back to allow them to place it on the new property they have found. At times the landlord, sadly, has hindered that process, and tenants have lost out financially, as well as losing any hope of a swift move.
‘With a deposit scheme, there will be the safeguard of a third party independent mediator to ensure both the tenant and landlord are protected and respected in a mutual agreement.’
This week, Deputy Brehaut met with two industry representatives who oversee and manage a large number of properties on Guernsey.
Their clients – especially from the UK – expected to use a rent deposit scheme as that is ‘largely the practice elsewhere’.
‘It is a case, again, of Guernsey playing catch-up,’ said Deputy Brehaut, although he believes the scheme already in Jersey could be ‘cut and pasted’ to be applied in Guernsey.
‘Coincidently, Guernsey’s environmental health officer [Tobin Cook] is writing a States report that will incorporate new housing legislation covering standards that can now include the form and shape of a rent deposit scheme.’
