AD proposes rent law reform

Alternattiva Demokratika is putting pressure on the Nationalist Party and the Labour Party to heed its suggestion and set up a national commission to liberalise property rentals in a way that ensures social justice and environmental protection.

Chairman Harry Vassallo told a news conference yesterday that almost one out of every four houses in Malta was vacant. This was scandalous in a country where countryside and agricultural land were becoming ever more scarce. One needed only to mention that agricultural land was being lost at a rate of two square kilometres per year," AD's spokesman for social policy, James Debono said.

"Instead of using current building stock, construction is being carried out on virgin land and our country will soon turn into a concrete jungle."

Dr Vassallo wrote to the Prime Minister and to the Leader of the Opposition last April asking that an agreement be reached by the political parties to reform the outdated rent law.

Dr Vassallo also proposed the setting up of a national commission with representatives of the three parties and including civil society nominees.

Neither Dr Eddie Fenech Adami nor Dr Alfred Sant has replied to Dr Vassallo's letter.

"In Malta there is no proper rental market. One finds two extremes: on one hand there are properties with extremely low rent rates from the immediate post-war period; on the other hand there are properties falling under the 1995 partial reforms with rent rates that are too high, many times exceeding Lm100 per month. Therefore there is need for change by means of responsible policies based on political consensus, social justice and environmental and economic sustainability," Dr Vassallo said.

"Due to Malta's antiquated rent laws various properties remain abandoned because the price of rent would be so low that landlords would not find it worth it to rent the properties. Another consequence of this law is that landlords may end up not carrying out repairs and maintenance work because they'd have no incentive to do so. Many of these properties end up vacant and in sub-standard status."

Dr Vassallo presented proposals for a reform in the rent law, including that a period should be established - for example five years - during which rent rates belonging to the pre-1995 period would remain in place.

However, a scheme would be created during this period where rent rates would increase depending on the date when the original agreement would have been reached. Upon termination of this period, a rent rate would be agreed by consensus between involved parties.

If the rental market resulted in rent rates that are too expensive for people with low incomes, the government should subsidise these persons' rent in order that they may fully participate in the rental market, he said. The subsidy in question should be related to the income of those entitled for the subsidy and should be revised in this way during the duration of the rental agreement.

To reduce the number of vacant properties, incentives and disincentives should be introduced to encourage landlords to include their properties in the market and they would be penalised if they decided not to do so.

For the reform in question to be properly regulated and monitored, a system of rent-registration should be introduced, for example within local councils, he said.

Rent of property for a defined period would remain in place according to the agreement on the period in question.

AD's proposals may be read on internet. Comments would be welcomed, AD said.

www.alternattiva.org.mt