More homes to come under rent control
An act placing an additional 9,710 units under the potential scrutiny of Rent Control was passed in the House of Assembly late last night.
Government MPs voted to increase the cut-off annual rental value figure and repeal legislation passed in 1983 promising future developers that they would not be subject to regulation.
The United Bermuda Party argued vehemently against the legislation, which will place rental charges of all homes with an ARV of $16,200 or less under the control of Government.
Previously, only units constructed before 1983 and with an ARV of less than $9,900 were subject to regulation.
While both sides agreed that there was a housing problem in Bermuda, each party had its own ideas about how to best alleviate the problem.
Minister for Health & Family Services Nelson Bascome, who tabled the bill, said that many tenants had been forced to pay sharp increases and rent.
He also said the 1983 protection provision, originally intended to stimulate development, had outlived its usefulness.
Government "continued to view rent control as a temporary measure,'' he said, although he did not indicate when the proposed legislation would be relaxed.
The minister said approximately 4,500 of the 13,313 homes with an ARV under $16,200 were rented out.
Shadow Health Minister Kim Young said her party's anti position had not changed from last summer, when the bill was passed by the House and rejected by the senate.
One year later, the bill will be automatically approved by the Senate.
She said the legislation would only shrink the number of properties on the market and stifle development.
"Other jurisdictions are working to eliminate rent control because it didn't work,'' said Mrs. Young.
"Landowners end up not fixing up their houses because they can't afford it.
Rent control causes tenants to live in substandard conditions.
"Others will take their properties off the market or default on the mortgages that they used rental income to pay.'' She pointed out that some homeowners who were not subject to rent control when property values were reassessed last year would fall once again under government regulation after "a year off''.
And rent control, Mrs. Young said, would only create red tape for landlords, especially those with difficult tenants who they wanted to get rid of.
More homes to come under rent scrutiny The MP implored Government stick to its promises, saying that Mr. Bascome had last year promised the availability of 450 new units on the market.
"This bill won't cover up the inadequacies of this Government with regard to housing,'' she added.
Government backbencher Derrick Burgess said the Act was a move by the Progressive Labour Party to improve the quality of life for the people in the country.
"Our greed has exceeded our needs,'' he said.
"We need to start sharing our wealth with other people. There are always going to be people with menial jobs and low incomes.
Shadow Minister of Legislative Affairs John Barritt said Government should be encouraging people to own "a piece of the rock'' rather than patch up housing problems with rent control.
"It isn't fair to characterise landlords as greedy,'' he said.
"We talk about rent gouging and I would really like to know how much of this is occurring. You can hardly blame people for wanting to make a return on their investment.'' And Mr. Barritt predicted landowners would spend money on their properties to bring them out of rent control, in much the same way that Bermudians improve their homes so that they can be bought by non-Bermudians.
The UBP's Erwin Adderley said rent control introduced by the UBP between 1977 and 1983 had failed, causing a slow down in house building during that period.
It had been a temporary measure, he said, and had been coupled with the building of 600 homes.
He said: "I have come to the conclusion this is a smoke screen for the ineffectiveness of the government in providing rental accommodation''.
Soaring rent costs had been stoked by Government hikes in ARV which gave people the notion to charge higher rents, he said.
UBP backbencher Trevor Moniz noted the lack of speakers from the PLP side springing up to support the bill.
He said owners of small properties would suffer a double whammy with hikes in ARV coupled with restrictions on rents they could charge.
Government backbencher Dale Butler said looking after the plight of the working man was central to the PLP's philosophy.
"We have an unshakeable commitment to the working man,'' he said. We're not going to budge on that.'' When Attorney General Dame Lois Browne-Evans got up to speak, she said: "This side of the House (the PLP) does not expect your side (the UBP) to ever understand the concept of rent control.'' The legislation was approved 16 for, ten against.
