Unjust rent law should be repealed
Government has again promised to reform the rent law. Will this actually happen or will it founder again as has happened in the last couple of decades? This restrictive law that amends the ordinary rent law in the Civil Code was introduced in Malta in the 1930s.
The British colonial administration ordered a census of all property in Malta. Owners had to declare their property and the rent derived from it and the notional rent that could be obtained from unleased property.
The colonial administration imposed a tax of five shillings in the pound, that is one fourth of the rental value. The census is preserved at the Public Registry as the Rent Register.
The rent was controlled according to the register and is still so controlled. This restriction applied to all buildings, whether living accommodation, commercial and others.
The rent of property that could be rented in 1914 was fixed at the rent, real or notional, in that year increased by 40 per cent - to this day it is still so pegged.
The greatest insult to landlords is that by this infamous law the contract of rent has been changed from a personal right of using other people's property (like renting a car) into a perpetual right similar to ownership, which may be inherited, denying the owner from ever recovering his property, even for his own purposes.
Let me give an actual example. The tenant is an old woman nearing her end. A married daughter who lives in her own house moves in with her mother so that she could eventually pay a pittance in rent and dispose of her own house. This blatant robbery has been sanctioned by case-law.
To continue with the same example, a son or daughter of the landlord (what a misnomer!) wants to marry but is debarred by court judgments from living in that house. The alternative is to borrow €200,000 or so from a bank at high interest and spend the better part of their lives in debt, with all the social and family repercussions which this involves.
So what was meant as a temporary measure has been retained for 70 years by our legislators, who seem to be oblivious to its gross injustice.
This is a despicable situation, and ruinous to newly married couples who need housing and are finding it prohibitive to raise a family.
The renewed promise to abolish the restrictive rent law is ominous in expressly contemplating the consolidation of present tenancies. It is disgusting that the landlord is being deprived of the possibility of ever recovering his property, compounding the injustice.
A timeframe should be set for the reform's speedy implementation and such 'tenants' should be ordered to vacate the premises within a short time. In such cases it would be a relief to young couples to know they could live in a home belonging to them or their parents and resell the property they had bought at the cost of such a heavy financial burden.
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B Agius
Jun 3rd 2008, 12:15
While I totally agree that this law is draconian and unfair, there is another side to this argument that no one seems to think about. The Government needs to decide how the many pensioners living in such rentals will be looked after (read subsidised) when this law is changed - repealed or whatever the Government intends to do. Is there the public housing to shift these people into? Or, perhaps, the Government should subsidise to market value for rentals occupied by such people.
JOSEPH FALZON
Jun 1st 2008, 18:41
Promises are ongoing. The white paper presented to Cabinet by Minister Dolores Cristina is now 2 years old but it is nowhere in sight. Government must stop now this legal robbery whereby the government is allowing people to inheret the rent book for free and pay no inheritence tax. And our children are required to get massive home loans to buy new property whilst others enjoy it for free.
Dear Government please end this injustice
Rodricka Spiteri
Jun 1st 2008, 17:44
I am a 32 year old married woman with 2 small children.At the moment my husband is not working on a full time basis because of health problems.we rent a house at €375 monthly .Till here nothing unusual .but i also own a house inherted from my father 3 years ego.From this house (with tenents in)i get €20 monthly.I think i sad it all!!!
Paul Busuttil
Jun 1st 2008, 16:35
It is incomprehensible that neither party in government or in opposition ever had the guts to do something about this unjust state of affairs which has long outlived its real purpose. It is most unjust that a group of (mostly) undeserving people are protected at law to the detriment of others and in such disproportionate manner.
c.t. busuttil
Jun 1st 2008, 15:32
Exasperating as this unjust situation is, land owners (!) must persevere in their outcry. We cannot sit and watch while our "tenants" live like kings (yes, some do indeed) and we have to count our pennies to try and help our own children. If the situation has not yet improved, we have only ourselves to blame. We need to come together as a force and pull together. Thank you, Mr Borg, for bringing up the issue again. We must all do our bit.
Miriam Galea
Jun 1st 2008, 12:24
and on it goes... and on...and on...