Solving one of the longest-standing injustices with property owners

The Malta Institute of Management (MIM) has welcomed the publication of the White Paper on rent reform as a move "to solve one of the longest-standing injustices with property owners".

Nothing short of a complete overhaul of the archaic rent laws will end over 60 years of suffering which legitimate property owners have had to endure, the institute noted.

The MIM said it recognises that, in the case of residential housing, a transition period is required not to create sudden hardships.

It agrees with the proposal that the "inheritance of leases" will be eliminated, albeit over a period of time, but it notes with satisfaction that the White Paper includes proposals to eliminate abuse.

"The proposed minimum rate is still way off from providing adequate compensation to property owners who are being asked to continue to subsidise tenants. The institute feels that the minimum rent for housing should be means-tested so that the need for social assistance can be established".

The 20-year transition period is way too long. In its submission in 2005, the institute had called for the immediate liberalisation of commercial leases. While commercial leases of publicly-listed companies are being liberalised, owners of other commercial property have to wait 20 years for a free market, it pointed out.