Launch of three-year study on property development
Saturday, January 14th, 2017
This is the full text of the speech by Malta Developers Association President Sandro Chetcuti at the launch of the study by KPMG at the Auberge de Castille, Valletta, on Thursday:
Hon. Prime Minister, Ladies and Gentlemen
Thank-you for the opportunity you have given us, even as a government, to enable us to launch this scientific, impartial study on property development in Malta and Gozo: sustainability and economic value added.
MDA champions for the second consecutive year
Saturday, December 31st, 2016
A team from the Malta Developers Association has won the football tournament, held on 29 December, 2016, at St Aloysius College, Birkirkara, in aid of the Dar tal-Providenza.
Among the eight teams who took part were politicians, priests and representatives of trade unions and the Malta Tourism Authority. Well done to all!
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.