Housing and Public Safety Minister David Burch blamed part of the Island's housing crisis on "greedy" landlords who are "wreaking havoc in the housing market."

And despite the raising of Annual Rental Values (ARV) through legislation passed by Government in 2004, Bermuda is witnessing rampant landlord abuse and exploitation, according to Sen. Burch.

"You have people around here extorting money from other people for accommodation that's up for rent and they're able to get away with it because the demand is so great," Sen. Burch added.

"You may recall that the rent control laws were last amended in December 2004. The change in the legislation, which took effect on January 1, 2005, increased the ARV band at which premises are subject to control.

"It was expanded from $16,200 to $24,600. It resulted in approximately 3,000 additional premises coming under rent control that were previously exempt.

"But we are still witnessing rampant landlord abuse and exploitation that is only ever present when there is a chronic shortage of affordable rental units.

"They can tell you, the Bermudian, no and from my point of view, it's little value to raise the ARVs to bring properties under rent control when you don't really address the problem."

Additionally, boarding house complaints are on the rise, particularly in the area of rent gouging, the Minister said.

It comes as a "new phenomenon" has emerged in which renting out rooms in a house is becoming popular, sometimes a parent's home, in order to generate extra income.

And in the process, many of these landlords with such arrangements, are violating fairness and trust between landlord and tenant, he believed.

"Many have breached the ethics and spirit of leasing/tenancy in Bermuda in pursuit of income far beyond that which is considered fair rental value," Sen. Burch complained.

Tenants who may be curious about the status of their rental units can make inquiries at the Office of the Rent Commissioner to determine whether or not the law protects their tenancies.

And if a landlord is found to have overcharged a tenant, that tenant may get the overcharged portion of their money back under Section 28 of the Rent Control Act.

Sen. Burch gave the rationale for Government's decision not to further increase the ARV, by stating that approach would not solve the underlying problems.

"Each time we amend ARVs, to increase the stock of affordable housing, we continue to move the bracket to include houses that have a lower rental value and not address the greedy speculator who is wreaking havoc in the housing market."