Got TIPS or BREAKING NEWS? Please call 1-284-442-8000 direct/can also WhatsApp same number or Email ALL news to:newsvino@outlook.com;                               ads call 1-284-440-6666

Inflated rent rates must be addressed – Hon Shereen D. Flax-Charles

- said VIP Government will continue to do its due diligence in an effort to address the issue
The issue of inflated rent rates has been a topic of much discussion following the hurricanes of September 2017. Many have complained their rent increased, sometimes by a 100%, for no justifiable reason. Photo: VINO/File
Junior Minister for Tourism Honourable Shereen D. Flax-Charles has called for the sore issue of inflated rent prices to be addressed. Photo: District 7 Turn The Page/File
Junior Minister for Tourism Honourable Shereen D. Flax-Charles has called for the sore issue of inflated rent prices to be addressed. Photo: District 7 Turn The Page/File
ROAD TOWN, Tortola, VI- A first time legislator of the Virgin Islands (VI) is responding to a long cry of consumers who have been for years calling on governments to address the issue of unscrupulous inflation of rent rates across the territory.

Today July 25, 2019 as legislators lend their voices to the Consumer Protection Bill tabled by Premier and Minister of Finance Honourable Andrew A. Fahie (R1), several Members on both sides of the House of Assembly (HoA) made their contribution.

During her presentation at the Fifth Sitting of the First Session of the Fourth HoA, which supported the need for the legislation, Junior Minister for Tourism Honourable Shereen D. Flax-Charles called for the sore issue of inflated rent prices to be addressed.

Disparity in average income vs financial services’

“Mister Speaker, I am not an economist, but I have identified what I consider to be the primary reason for our increasingly outrageous costs for rent in the Virgin Islands that distress and disenfranchise our people on a regular basis,” said Hon Flax-Charles.

Citing the 2017, BVI Finance commissioned report entitled ‘Creating Value: The BVI’s Global Contribution’, which detailed the impact of the financial services provision to the global economy., Hon Flax-Charles said one illustration that stood out was the comparison of the general average income per annum when compared to that of workers in the financial services industry.

“It is an age-old fact that the Virgin Islands’ Gross Domestic Product per capita is skewed upwards significantly due to individual sectors with exponentially larger salaries. The domestic market is a living organism and the presence of these higher earning pockets has caused it to respond with inflated prices that should appeal to these workers,” she noted.

She further added, “In looking at what is driving the decisions for high rent costs, as a Government there is an opportunity for us to hold consultations with landlords and stakeholders to see what drives the high prices? Is it insurance costs? Mortgage/loan fees? Is it our own free will because there is no price control? We have to get to the bottom of it to adjust it.”

The first female legislator from Virgin Gorda alluded to current meetings with insurance companies and stated that it is time for lawmakers to meet with the banks to understand this phenomenon even more because in everything there is a ripple effect.

“Yes, I have offered my theory, but as representatives on the frontlines we all know that the experiences and decisions of a person are as complex as they are challenging. Is it that mortgages are high? Is insurance too expensive? How can we reduce the cost of maintaining rental units so that the cost price can in turn be lowered? This is the conversation we need to have.”

Affordable housing system to regulate rent

Hon Flax-Charles also reiterated her full support for an affordable housing system. “A regulated presence on the market would serve as a reasonable standard having the effect of encouraging property owners to reduce their costs in turn while still earning a profit.” 

“Mister Speaker, for us to address the adverse consequences of the market that negatively affect our people and businesses, as Government we will continue to do our due diligence and home work to understand what works and what does not work in this Virgin Islands economy. We will continue to do so working in tandem with those stakeholders who are directly impacted,” said Hon Flax-Charles.

She urged her fellow representatives to take stock of the legislation and begin to transform the agencies for which they are responsible so that the Government of the Virgin Islands itself is seen as both a just supplier of services and a diligent, protected consumer.

She stated firmly, “The Government is a supplier of public service. The unconventional administration of Honourable Andrew A. Fahie, which I am proud to be a part of, has already pledged to do our part as policymakers to improve services, while the public officers through the Deputy Governor’s Office transformation of the public service initiative are doing their part to provide services at an optimum level.”

12 Responses to “Inflated rent rates must be addressed – Hon Shereen D. Flax-Charles”

  • Landlord (25/07/2019, 21:07) Like (25) Dislike (1) Reply
    Address the increase in insurance policies first
    • NAHH (26/07/2019, 06:43) Like (5) Dislike (5) Reply
      Some of ya’ll to greedy
    • Agree (26/07/2019, 09:10) Like (15) Dislike (3) Reply
      WHY THE HELL THIS WOMAN DO NOT GO AFTER THE BANKS AND THE INSURANCE COMPANIES. WHEN THEY DO BETTER THE WE LANDLORDS WILL DO BETTER CHECK THING OUT BEFORE YOU SPIT OUT FART. THE INSURANCE COMPANIES PRICES IS TOUCHING THE SKY AND THAT IT OK TO YOU BECAUSE YOU CAN AFFORD IT .
  • Jordana.. (25/07/2019, 23:58) Like (9) Dislike (0) Reply
    Thank u Min. flax-Charles for publicly shining the light on Thisbe matter .. for e.g. after Irma some of these greedy unscrupulous landlords “jacked” up their rent fee tho the apt was damage while others were kind enough to even give some tenants a break..Legislation is needed to prevent the high cost of rent.. also salaries need to be sufficient for the high cost of living in the BVI.. food, rent, clothing etc are all expensive.. so long ago the Social Security Board was looking into building affordable homes- is this plan dead in the water?.. thank to u and the rest of your team for all that you’re doing in trying to make the BVI a
    better place and looking out for the people .. kudos for the Consumer Protection Act..
  • AMEN!! (26/07/2019, 06:42) Like (8) Dislike (4) Reply
    This is tru!!! Rent is to high! N i cant see what these land lords do with the money.......we still have to fix everything !! While they sit n collect thousands of dollars from us!!!
  • Please............ (26/07/2019, 09:39) Like (19) Dislike (0) Reply
    We need to stop picking on one side, versus the next, and address the workings of our economy. Persons who own property, did not expect to have to build it twice. Insurance companies who are in the business of risk management, have increased their rates 100%, but we attack the landlord? In economics, when demand exceeds supply, rates go up - that is a fact! Rentals are not subsidized or funded by government. Additionally, we have a simple tax structure that facilitates the financial service industry (they always come first). In some countries the incentive for lower prices is built into the tax structure. What will be the incentive in our situation? This is a very complicated discussion. Government can try to dictate but the reality is it will not work! So instead of attacking one sector or the next, come up with a meaningful suggestion.
  • WHAT!!! (26/07/2019, 11:12) Like (8) Dislike (0) Reply
    Without taking sides I can see the landlords point of view when insurance rates were allowed to double or more the increase had to be passed on to the consumer .
  • Windy (26/07/2019, 12:09) Like (1) Dislike (3) Reply
    A waste of time. One must look at who these landlords are. They are the big island names … nothing will happen
  • GG (26/07/2019, 17:46) Like (1) Dislike (0) Reply
    Please listen to the entire speech. Mention was made of insurance and insurance companies
  • Knowl (26/07/2019, 17:56) Like (4) Dislike (0) Reply
    I am glad the Jr Minister is talking about this. I am not an economist but I can apply the ABCs (Apply Basic Common sense). First of all the cost of construction in the VI is too high! Then you have to get a huge mortgage to build your home or investment property. Factor in the cost of insurance which is also too high, landlords don't have much choice but to charge high rent. The solution can be affordable housing by the gov't but this should be well regulated so that it does not become an eye sore like those in the neighboring USVI. Or find a way for the banks and insurance companies to reduce their fees. The gov't should solicit a bank or insurance company to set up shop in the VI that willing to work with the lower income and middle income households. That way the existing service providers would have no choice but to reduce their prices to stay competitive
  • island man (26/07/2019, 22:59) Like (1) Dislike (0) Reply
    Shereen don't be quick to jump. Tenants aren't always right. Rent to 2 sleep 8 ask how much rent they paying $700. Who responsible for the damages? Any other business


Create a comment


Create a comment

Disclaimer: Virgin Islands News Online (VINO) welcomes your thoughts, feedback, views, bloggs and opinions. However, by posting a blogg you are agreeing to post comments or bloggs that are relevant to the topic, and that are not defamatory, liable, obscene, racist, abusive, sexist, anti-Semitic, threatening, hateful or an invasion of privacy. Violators may be excluded permanently from making contributions. Please view our declaimer above this article. We thank you in advance for complying with VINO's policy.

Follow Us On

Disclaimer: All comments posted on Virgin Islands News Online (VINO) are the sole views and opinions of the commentators and or bloggers and do not in anyway represent the views and opinions of the Board of Directors, Management and Staff of Virgin Islands News Online and its parent company.