MDA stresses need for serious due diligence process in Residence and Visa Programme for Malta
Saturday, August 29th, 2015
The Malta Developers Association welcomes with satisfaction Government’s decision to launch the Residence and Visa Programme for Malta.
Through this Government programme, more investors are going to be attracted to our country and encouraged to buy or rent quality property. At the same time the minimum price established for property will avoid competition with buyers for cheaper properties.
Resource Efficient Buildings : Industry – Academia Networking Event
Saturday, August 22nd, 2015
The Knowledge Transfer Office at the University of Malta is pleased to invite you to the upcoming industry-academia networking event focusing on the “Resource Efficient Buildings”. Our goal is to provide a platform for a profitable exchange between academics and local companies in order to promote innovative ideas, collaboration and to take advantage of EU funding opportunities.
MDA ON NEW HOUSING AUTHORITY RENTAL SCHEME
The Malta Developers Association (MDA) refers to the new rental scheme launched by the Housing Authority through which property owners can rent their premises to the authority, which will then sublease it to tenants at subsidised rates.
The idea of using existing vacant building stock for rents to persons who qualify for social assistance in housing originated from one of the many suggestions made to Government before the Budget by the MDA, which had also suggested that a fixed rent for a predetermined period could be incentivised by a reduction in income tax from rents, as actually indicated in the announced scheme.
However, instead of allowing for a free rental market with tenants dealing directly with owners and then registering the lease when applying for subsidy, the scheme has become one where owners lease to the Housing Authority, which in turn sub-leases to the tenants.
This is in fact a major obstacle for the success of the scheme. Owners would normally seek to know who the prospective tenants are before they enter into a rental agreement and should not be obliged to accept anyone who obtains a sub-lease from the Housing Authority.
This would have avoided a lot of expensive bureaucracy and expenses on the part of the Authority, which will now be responsible for potential damages made to properties by its sub-lease holders.
With the announced scheme the property owners concerned will lose all control of their property and what happens to it, much as what used to happen in the past in the case of requisition orders.
It is a pity that such a good initiative has been smothered at its inception in this way rather than being allowed to flourish, something that would not have happened had the Housing Authority consulted interested stakeholders before finalising the scheme.