Conclusions of rent laws survey

The Survey confirms that home ownership remains the most attractive option for the Maltese, with a staggering 89.7% saying that they live in a home they own. The rest live in rented property falling in three different groups: those who rent at...

The proportion of those living in rented property is declining fast and, in proportion, fewer persons live in rented properties per household than in self-owned properties. Households occupying property rented at wartime rates are typically elderly persons while those living in non-rented property are relatively young couples with children still at home. This effectively results in a proportionately lower person-to-house ratio for rented property than is that for home-owned properties.

The incidence of home ownership is high across all social groups but is highest among the AB (96.5%) and C1 (93.5%) categories, in contrast to C2 (87.8%) and DE (85%). It is proportionately highest among those aged 51-65 (95.6%). But in absolute terms, the largest number of self-owned housing stock is owned by persons aged 36-50. In fact, of all self-owned properties, 27.5% are owned by members of this age group.

Only 4.3% live in commercially rented premises. As was to be expected, only persons belonging to the lowest socio-economic category (DE: 3.8%) reported that they live in premises rented at pre-war rates.

However, 5% of the population live in Government-owned dwellings. This effectively means that the rent is also highly subsidised. Of the total number of persons who indicated that they live in this category of housing, 46.7% belong to the C2 socio-economic group. An equal number belong to the DE socio-economic group while the remaining 6.7% belong the C1 socio-economic group.

All the respondents (11.3%) who said that they live in rented homes were, in turn, asked for how long they had lived there. The results indicate that mobility is rather on the low side: 3.2% of the respondents claimed to have been living in their home for 1-5 years and 12.9% for 6-10 years. The overwhelming majority (67.7%) had lived in their homes for between 11 to 20 years while 16.1% had lived in the same house for over 20 years.

Those who live in government rented dwellings were also asked whether the house was originally rented to them or to someone else. The vast majority of the houses were rented directly to the respondents (73.3%); only 13.3% said that the house had been rented to a family member before, while 13.3% did not answer. A high incidence of those who stated that they had, so to speak, inherited the rent from a family member belong to the lowest socio-economic category (DE: 28.6%); and are between 16-25 (33.3%) and (36-50: 14.3%).

Support for referendum

Alternattiva Demokratika is proposing a referendum to abrogate the 1939 rent laws. In view of this proposal, this survey sought to obtain the views of the Maltese on this issue. The overwhelming majority (97%) are in favour of such a referendum. Only a minuscule 0.7% said they would be against, while the remaining 2.3% did not commit themselves. Such a referendum is not welcome by respondents belonging to the DE: 1.3%; C2: 1% and by the youngest (16-25: 2.1%) and oldest (65+: 2.1%) respondents.

All the participants in this study were also asked how they would vote if this referendum were to be held. Again, the preponderant majority (92.7%) would vote for a change in legislation; only 5.3% said that they would vote against. The highest incidence of those who oppose the proposed change in rent laws is among those who are in the three lowest socio-economic categories (DE: 11.3%; C2: 4.1% and C1: 3.3% vis-à-vis AB: 0%); and among those in the 16-25 (6.3% and 51-65: 5.9%) age groups.

Respondents were in turn asked whether they thought that if rent laws were to change and more houses were to become available in the rental market, many more young couples would seek to rent rather than borrow to build a new house. Many Maltese (90%) believe that such a change in rent laws would effectively mean that young couples would probably rent more than at present. Only 7.7% do not believe that this would be the case, while 2.3% did not offer an opinion. As such, a high incidence of support for a change in rent laws was registered among respondents of all ages and all socio-economic categories.

Adjusting social rents

Another question was whether social housing rents should be adjusted to reflect the income of the tenant if this changes, rather than remain fixed at the original level. As many as 95.3% agree that rent should not be fixed but should vary according to the changing financial position of the tenants of government-owned housing. Only 3.3% wanted the rent to remain fixed.

Lack of support for change away from the existing 'fixed rent' system was predominant among respondents in the DE and C2 socio-economic categories, with 7.5% and 3.1% respectively, and among persons in the 36-50 (4.8%) and 65+ (4.3%) age groups.

Inheritance of tenancy

In respect of tenancies granted before the 1995 changes in rent legislation, in Malta a person who lives with the tenant has the right to inherit the rent when the original tenant dies, even if he is not related to him or her. This effectively meant that it is practically impossible for the owner of a house to claim his house back.

For this reason, the respondents in this study were asked whether they agree that this provision should continue to apply to rented property covered by the law at present. A total of 83.3% of the respondents agree that this provision should be removed, while 15% say it should be retained. The highest incidence for lack of support to change was recorded among DE and C2 respondents at 28.8% and 14.3%; and among the oldest (65+: 19.1%) and youngest (16-25: 16.7%).

In turn, those 15% of the respondents who had agreed that the tenancy should be inherited, were asked whether the rent should remain the same or whether the rent should vary according to the means of whoever benefits from this provision.

The majority (71.1%) consider that the rent should be commensurate with the income of the new tenant. However, 28.9% are not in favour of such a change in the rent law. It is apt to point out that all the participants who are against change belong to the C2 (35.7%) and DE (34.8%) socio-economic groups.

Finally, the participants in this study were asked their opinion as to whether a person who owns other property from which he earns rent at commercial rates, but who himself lives in government-owned housing, should enjoy government-subsidised low rent.

Overwhelmingly, the Maltese disapprove of this. Only 2.3% see nothing wrong if this were to be case, while another 2.3% did not wish to commit themselves.

Surprisingly, however, the socio-economic group whose members were most willing to accept that persons who earn property rents at commercial rates continue to live in government-subsidised properties was the DE socio-economic group.

Within this group, only 85% opined that this should not be allowed, in contrast to the national average of 95.3%. Of the rest, 6.3% insisted that there was nothing wrong in this while the remaining 8.8% did not offer an opinion.

Socio-economic groups

AB: professional, managerial, administrative

C1: higher clerical, clerical, supervisor, skilled craftsmen and technicians, owner/manager of small business

C2: skilled manual workers and foremen

DE: semi-skilled, unskilled, labourers, casual workers and persons whose income is provided by the State.