THE States could consider renting private sector property to lease to its own tenants.

Housing minister Dave Jones said that the initiative was just one of many ideas he had for developing the private rental sector, the subject of a new report before the States at the end of the month.

He said he wanted to create real choice for people and do more for tenants, particularly those stuck in the poverty trap.

But he has ruled out direct financial help.

‘There are some people in rent-induced poverty,’ he said.

‘People paying 60% of their weekly income in rent causes poverty. There is very little left for children’s clothes or food.

‘The government in the past has failed to address that issue, but I don’t want to go the other way of Jersey and extend the rent rebate scheme into the private sector. That’s now costing Jersey £8m. a year and that’s not sustainable. Certainly the Treasury would baulk at the idea.

‘But I want to be able to encourage people to move from expensive private rental into social need housing, but you have to create more units to make that possible.’

Deputy Jones criticised a lack of States foresight in not replacing a number of rental units in Town lost to offices in the 1970s. The size of the private rental sector has declined from some 5,000 households in 1971 to fewer than 4,000 30 years later.

‘It’s an areas that has not been addressed by the States but I’m determined to reverse it.’

He suggested that a number of private sector properties were currently vacant and seemingly unable to attract tenants.

‘Perhaps we should be looking at leasing some of those and letting them out?’

While he opposes direct financial help, the Housing minister does not necessarily accept a premise of the report that market forces should be allowed to set rent levels.

‘I don’t agree,’ he said. ‘Housing has a duty to make sure that there is affordable accommodation for all sectors.

‘A lot of people in private rental should be in social need housing, but because of the failure of previous administrations to address these problems, they are forced to stay there. This comes right back to choice.’

Deputy Jones said, and the report acknowledges, that there were no quick fix solutions.

‘But certainly if we keep chipping away at it, we will make steady improvements,’ he said. ‘I will keep the pressure on.’

* The States will debate the report at the end of the month before Housing brings forward a package of proposals at the end of the year.