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BERMUDA | RSS PODCAST

Bermuda's land licence is "detrimental" to housing market

Government legislation forcing Bermudians married to foreigners to get a licence for their homes is negatively affecting the housing market, according to the deputy leader of the Bermuda Democratic Alliance Katherine Michelmore.

In addition to being “discriminatory and punitive towards Bermudians on the basis of their marital choice”, Ms Michelmore said it was also contributing to a “lack of confidence” in the housing market.

The BDA deputy leader made the comments through a ‘Letter to the Editor’, which urged Government to rethink the licenses, particularly the six-month period it takes to process them.

This paper was unable to reach Environment Minister Walter Roban for comment yesterday.

Since June, land licences have been required for all Bermudians married or living with foreigners for homes they own and which their partners financially contribute to or benefit from.

Locals who failed to comply could face prosecution under the Bermuda Immigration and Protection Amendment Act 2007 and could face a maximum five year jail term and/or up to $1 million fine.

The legislation was designed to restrict the amount of non-Bermudians who own land in Bermuda.

According to Ms Michelmore, it is having a “serious and detrimental effect” on the local housing market and is inconveniencing some Bermudians and their spouses.

“Bermudians are currently waiting up to six months to have their licences to purchase property approved.

“Even if you agree with the Government’s rationale for the need for licences, it must be admitted that this is an unacceptable delay. The ‘subject to licence’ clause puts Bermudian buyers at an initial disadvantage in vying for property, and then leaves families in a state of limbo whilst they await the permission to purchase.”

She asked: “How are Bermudians meant to plan for a closure date when there is no guarantee regarding when their licence will be approved?

“What dampening effect is this having on the buoyancy of the housing market in a climate already restricted by the austerity measures of local banks?

“Ask the estate agents and commercial property assessors, and they will confirm that this policy is a hindrance and a disincentive in the movement of property.”

Ms Michelmore said if these property licences are necessary, Government “have a duty” to see that the process takes place swiftly and effectively and in under eight weeks.

It should also aim to minimize the inconvienance experinenced by Bermudians and their spouses, she said.

“If the Ministry responsible cannot deliver this, then a long hard look must be taken at whether the legislation is justifiable,” Ms Michelmore added.

To read her entire letter visit page four of today’s paper.