The Malta Developers Association (MDA) refers to the recent decision of the Constitutional Court, whereby the current legal regime regulating rents of properties leased before June 1995 was declared as breaching landlords’ fundamental rights.
Currently, owners of property that was rented out prior to June 1, 1995, had no right to refuse renewal of the lease and had to make do with a ‘fair rent’, despite soaring market values. The court ruled that this regime created an unjust imbalance between the rights of the owners and those of the tenants, with the former having to shoulder, for years on end, the social burden induced by the current legislation.
The country is now in a position where various areas of rent control legislation have been found to breach the fundamental rights of citizens to enjoy their property. At the same time, Government is considering the reaction to the recently issued White Paper on rent reform.
MDA believes that the whole issue of rent reform should be tackled comprehensively so that a balance is found between the rights of landlords and the protection of tenants. Hitherto, attempts at piecemeal solutions have led to creating more legal complications than solving problems.
MDA also believes that such a radical change cannot be foisted suddenly on the country and therefore Government should seek to establish a new permanent rent regime applicable for all rented property to be introduced in stages during a reasonable transitional period. Mda appeals to all property owners to continue to join and affirms that it will be at the forefront to address these injustices.