The wrong referendum

Alternattiva Demokratika want a referendum to reform the rent laws. Why?

They claim this will reduce the amount of empty housing (my whole article is only about residences). First blunder!

They are bad at maths. Two and two do not make five in any circumstances, except in those of someone desperate to gain votes.

There are over 30,000 empty units. There are 3,000 who say they need housing. To help AD's argument, let's say they all do need housing. Let's even imagine there are another 3,000 out there who need housing but who do not register their need. And I'm not talking about this very relative Maltese need where so many just want some flat or plot for free. I'm talking about the significant few who cannot afford to help themselves, who cannot buy or rent at the current market rents or sale prices.

We have inched up to 6,000 as against anything around 30,000 plus empty units.

Who is going to fill up these empty units just because rent laws are changed? Sicilian hairdressers or all those EU nationals who were meant to flood here when we became members of the EU? There simply aren't enough households to fill up those empty units.

Some housing is empty because of the rent laws. Some housing is empty because of arguments over inheritances.

Some is empty because it's just not suitable as a modern home. Some is empty because it's people's summer home. Some is empty because its people's investment. Some is empty because it's being kept for the kids. Some is empty because it can't be sold at the prices demanded. Some is empty because essentially we're giving permits for a lot more housing than we need from our demographic projections to date!

But it is important to remember that we can't go on building at the rate we're building and not keep maintaning this highish proportion of empty homes.

Second blunder

The fear of requisition is simply a non-issue in AD's view. Harry Vassallo tried to rubbish Lawrence Gonzi, but the PM was speaking about facts. I saw a survey done by MEPA where 90 per cent of landlords said they wouldn't rent to Maltese because of the fear of the government's power to requisition coming back. Their fear was not the rent laws but this!

So if old rent laws are changed and nothing is done about this potential requisition fear we'll remain where we are. It is vital that both parties put this in our Constitution if necessary. After all if there is an earthquake or a national disaster as AD fear that can be changed again.

Third blunder

The new rent laws changed nothing. They did. All over Malta but in areas like St Paul's Bay, Qawra and Bugibba, there is a booming if unofficial rental market. It is not all officially declared. It is not controlled. Many people are buying flats to let them out and they are doing so, very quickly.

Prices are exorbitant in some cases but people are going out and renting, and landlords are renting to them because of the protection of the new rent laws which came in.

The worry for me is these rent levels are high for low-income families. We're all going to have to be taxed to pay for these modern rent levels eventually. And of course they are out of reach for those who are genuinely living off social security.

But no rent law reform is going to give us a glut of cheap housing again.

And I am very worried about these people paying rents of Lm150 per month. OK, they can manage now when they work but when they retire what's going to happen to the thousands who are renting privately at market rents? Who will pay their rent when they only have their pension?

That's exactly what landlords do not want. The market doesn't give you affordable good quality housing for people who are poor or on a low income. That only happens if the state gives generous subsidies on the rent. So state subsidy will give more affordable housing not rent law reform

Fourth blunder

We need rent law reform so that we can have what Dr Vasallo calls a "cultural reversal towards rental".

Who besides some AD columnists want this? After years of experience with people in this area I can confirm almost all see rent as a waste of money and want to buy if they can. Are all these rental exponents of AD tenants or home owners?

And when many people say they want to rent (like those who are on the housing waiting list) they are saying they want a home for Lm100 a year. That is not rent. That is housing for free and no rent law reform will produce that.

So AD should stop deceiving people into thinking this is a people's cause too.

Where we agree

I wrote against the injustice of the right of inheritance way before Harry Vassallo did. It should be abolished with some protection for a minority of very vulnerable cases - for example, the 70-year-old living with his 90-year-old mother.

There is no automatic right of inheritance in government leases, so how can Government impose this on the private sector?

Let's just have a referendum on whether the right of inheritance in private leases should be abolished with some protection. I would vote for that too. That would be the right referendum...