MDA welcomes Government Initiative to start addressing injustices caused by pre-1995 Rent Laws

The Malta Developers Association (MDA), welcomes the initiative taken by Government to start addressing the injustices suffered by landlords years on end through anti-Constitutional pre-1995 rent laws.

The MDA has repeatedly insisted and incessantly called on various government administrations to address this situation and to find a solution in the interest of both landlords and tenants.  The MDA also acknowledges that it is not easy to find the right balancing act and commends Government for tackling this difficult task.

However, whilst noting that it is the first step in the right direction, the MDA notes that there are various aspects which need to be addressed:

1. The process with which the landlord will receive the compensation is not yet clear.  An expedient and transparent process is required.
2. The process with which the valuation is to be carried out is not yet established.  The valuation must be carried out by professionals and must reflect the current market price.
3. The means test must be carried out diligently so as to eliminate and cut down on abuse.

This is MDA’s initial reaction.  MDA will be giving further input once more details about how the mechanism will work is published.