ADPD awaits detailed legislative proposals on pre-1995 rent law reform

ADPD awaits detailed legislative proposals regarding the pre-1995 rent law reform announced by the government over the weekend.

"The proposals put forward by the government are acceptable in principle. However, it is expected that when the government publishes its detailed legislative proposals, these are accompanied by the studies carried out which substantiate the proposals made. We await a healthy public debate which is adequately buttressed by well-researched background information," the party said in a statement.

The party was reacting to the announcement made on Saturday that the government had plans to reform the pre-1995 rent laws.

The party said that so far, it is clear that the determination of rent will not be left entirely to the whims of market forces as it will be capped at 2% of the property’s value. “This will go some way to address the fallout created as a result of the complete liberalisation of the post-1995 rental market,” the party said.

“It is positive that the reform will ensure that no current tenant currently residing in properties subject to pre-1995 tenancies will end homeless. This will be so since as a result of the proposed reform, through the taxes that we pay, the state will in most cases shoulder the revised rent due, or else the state will provide alternative accommodation,” the party said.

ADPD said that the proposals would address an enormous social problem with a substantial financial outlay consisting of millions of euros annually.

“These costs have to date been borne by the owners of the impacted 10,000 properties for countless generations. It is just and right that the whole community, through the state, now steps forward to shoulder the problem in a spirit of national solidarity with the most vulnerable amongst us,” the party said.

The Malta Developers Association and the Chamber of Commerce have called for more clarity on the mechanisms that will be adopted, especially to reimburse landlords.