Comprehensive Housing Policy for Bermuda

Objective

This policy outlines a structured roadmap for revitalizing Bermuda’s housing sector to support accessible housing across income levels and promote secure pathways to homeownership. Through legislative updates, financial incentives, streamlined approval processes, and transparency measures, we aim to restore confidence in the rental market, reduce economic pressures, and expand housing options for all residents. By removing barriers to development, implementing a self-managed approval framework, and establishing a housing registry to track housing availability, we aim to ensure every Bermudian has the opportunity for stable and equitable housing.

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Immediate Actions (0-1 years)

Revise Tenant and Landlord Legislation

• Repeal the outdated Rent Increases (Domestic Premises) Control Act 1978, replacing it with a consolidated Landlord and Tenant Act. This update will phase out restrictive rent control measures, following best practices from England’s Consumer Rights Act 2015. Rent adjustments will be limited to once per contract term, fostering fair agreements that protect tenants and encourage landlords to offer more properties for long-term rental.

Flexible Zoning for Residential Expansion

• Adjust zoning regulations to allow commercial, industrial, and institutional zones to be converted into mixed-use areas, targeting underutilized and vacant buildings. This aims to increase housing availability by maximizing existing structures, expanding housing options across income levels through private sector partnerships.

Offer Long-Term Leases for Government-Owned Properties

• Provide long-term leases for government-owned properties that require maintenance, with the condition of residential use. This allows these properties to be updated and maintained without taxpayer expense, increasing the affordable housing stock.

Island-Wide Tax Incentives for Development

• Introduce duty cuts on building materials and other tax incentives to reduce construction costs island-wide, encouraging private developers to invest in new projects. This approach will lower development costs, expanding the housing supply affordably and efficiently.

Property Tax Waivers for Affordable Rentals

• Waive land tax for landlords offering long-term rental units below an Annual Rental Value (ARV) of $22,800. This measure promotes affordable rental units by incentivizing landlords to maintain lower-cost housing options.

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Short to Medium-Term Goals (1-3 years)

Streamlined Development Approval Process

• Implement a self-managed approval framework with checks and balances, allowing developers with proven records to advance projects independently with automated compliance checks and random audits. Consultations will also update, amend, and consolidate the Development and Planning Act 1974, Building Authority Act 1962, and other related laws, creating a more efficient regulatory environment.

Fund Rental Assistance Programs

• Allocate 20% of Corporate Income Tax revenue to strengthen the social safety net, providing dedicated funding for housing initiatives and financial support for vulnerable residents. This commitment aligns with the guiding principle: “Let the hungry be fed, the naked clothed, the sick nourished; the aged protected, and the infants cared for.” This foundation will promote long-term housing stability, supporting stable families and community well-being.

Introduce Rent-to-Own Programs

• Allow long-term Bermuda Housing Corporation (BHC) and Bermuda Land Management Corporation tenants with stable rental histories to participate in rent-to-own programs, offering a path to homeownership and enabling tenants to build equity over time.

Create a Housing Registry

• Develop a housing registry to track data on housing availability, rental durations, and properties that are vacant, derelict, or under renovation. This registry will be a valuable resource for residents, policymakers, and developers, supporting informed decision-making and identifying opportunities for housing development.

Reassess Short-Term Rental Legislation 

• Reevaluate the Vacation Rental Act 2018 with consideration for repeal. This act has functioned largely as a tax measure, raising costs for working-class landlords.

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Long-Term Goals (4-6 years)

Additional Land Tax Reductions Based on Market Conditions

• Use housing market data to determine further land tax reductions, easing pressure on the market and promoting affordability for residents and landlords.

Increase Homeownership Opportunities Through Government-Owned Properties

• Put select government-owned properties out to tender or for sale, prioritizing residential development. This approach will increase homeownership opportunities while encouraging private sector solutions to Bermuda’s housing needs.

Annual Policy Review and Public Feedback

• Conduct an annual review with public consultations and regular reporting to Parliament on key housing metrics. This includes trends from the housing registry, rental assistance outcomes, and policy effectiveness. This approach ensures that policies remain adaptable to Bermuda’s evolving needs, fostering transparency, public trust, and active community engagement.