The Free Democratic Movement has pledged to replace rent control laws with updated legislation over six years.

The group proposed to phase out the Rent Increases (Domestic Premises) Control Act 1978 with guidelines it described as “fair” and “modern”.

A FDM spokeswoman said: “Our goal is straightforward — to bring more rental properties back on to the market and provide Bermudians with the housing options they deserve.

“This plan aims to increase supply, bring stability to our communities and take a critical step forward for Bermuda’s future.”

The FDM said that the Rent Increases Act, while well intentioned at first, now created barriers to homeownership and affordable housing.

The spokeswoman explained: “Many landlords, feeling that their property rights are compromised, avoid the long-term rental market altogether — leaving properties empty, converting them to short-term rentals, or upgrading them beyond affordable levels.

“In some cases, these restrictions have even led to discriminatory practices among landlords.

“The scarcity created by these policies only increases competition, leaving fewer options for Bermudians seeking stable housing.”

The FDM said it hoped within the first year of office to revise tenant and landlord legislation to phase out “restrictive” rent controls and replace them with fair agreements and tenant protections.

Zoning would be adjusted during this same year to allow commercial, industrial and institutional zones to be converted for residential use.

Long-term leases would be offered for government properties no longer in use and the cost of construction materials would be reduced.

Within about three years, the FDM planned to create a “self-managed, streamlined approval framework” to help developers proceed with reduced oversight.

The party said that consultation would be conducted to see how to best consolidate construction and development laws, while a housing registry to give data on availability would be carried out.

Property taxes would be waived on affordable rentals while rental assistance programmes would be reinforced through funding.

Tenants living in government-managed properties would also be introduced to rent-to-own options.

The housing strategy’s long-term goals, intended to be implemented between four and six years, would seek to build on homeownership through the sale of some government properties.

Further tax reductions would be based on housing market conditions, and a transparent annual review process would be held to keep track of the public’s housing needs.

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FDM Housing Policy.pdf

• To read the policy statement in full, see Related Media