Karl Stago-Navarra
Parliament has approved the long-awaited reform to rent law, concluding a year long vast consultation process and detailed debate on the subject that is set to revolutionise the sector after more than 50 years of stagnation.
The law – as approved by the House Committee – aims to strike a “delicate balance” between owners’ rights to reclaim their property and tenants’ social rights wherever they are warranted and bringing property rented according to pre-1995 regulations in line with the same market conditions as those leased afterwards.
Owners of properties predating the 1995 amendments were legally bound to charge rent as fixed by pre-war rates, allowing only for very marginal increases. The same rent law regime also held landlords responsible for maintenance costs, which often exceeded their annual rent revenue. Tenants on the other hand benefited from disproportionate protection against eviction, creating an automatic injustice that political parties have traditionally shunned for fear of losing votes.
This new law therefore marks the culmination of an acrimonious controversy that has divided the country for decades. However, the newly reformed law also differs radically from the original White Paper on the matter, indicating the wide consultation process that has contributed to the amendments absorbed in the Bill.
Social Policy Minister John Dalli last night refrained from commenting about the new law, stating that his Ministry will shortly embark on a nationwide information campaign to inform the general public about the details.
A senior government spokesman told this paper that the new law provides a just solution for the landlords, who will eventually get their property back, and a socially acceptable solution for tenants.”
The plans include guaranteeing security of tenure for existing tenants in residential property, but will scrap existing rights for tenants of garages and summer residences.
The former social policy minister Dolores Cristina had twice presented rent reform papers to Cabinet, while former Alternattiva Demokratika chairman Harry Vassallo waged a campaign calling for a referendum which never materialised, as the 30,000 signatures required were never collected.
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