If some of Roderick Galdes’s views in ‘A rental sector that works’ (November 30) emerge, duly fleshed out, in the coming White Paper on rent reform that both he and I are so expectantly looking forward to, then I have a gut feeling that we may yet be getting closer to some solutions that, in true and correct socialist mode, may yet put paid to what is so often blindly trumpeted as “the market must reign supreme”.

Rather than the expected number of new foreign workers in Malta’s economy, it should be the need for equity and justice to Maltese who rent their abodes that should be proven paramount in the White Paper’s considerations.

Yes, as Galdes writes, how the private rental sector affects housing in general and the well-being of society at large, those focus points should be kept constantly under the government’s eyes and properly regulated.  And this is because there in fact should not be such a thing as “social” housing.

Why should there be a situation where private landlords can indulge in extortion, while the government is forced to: (a) be constantly in a situation where it is playing ‘catch-up’ with demands for decently priced abodes; and (b) because of this thing called “the market” (in a country 17 miles by nine) others (private landlords) can price to whoever they so choose at levels that they can structure at will... this is sheer inequity crying to the heavens.

So, yes, again, Galdes is right when he says that “it is simplistic to believe that housing prices will stabilise merely by fuelling supply”.  And that should be a clear warning bell to those guys at the Planning Authority who – at least so it clearly looks like these days – blindly approve the bringing down of houses (some indeed also of great architectural value) for replacing by apartments or flats.

There in fact should not be such a thing as ‘social’ housing

Again, will the White Paper go into this element? One can only hope it does. Indeed I will also be looking forward to the White Paper tackling the simple question of “whether the building and construction sector should, in a Malta of its size, be allowed to get bigger or downsize?”

Galdes also makes a very clear statement to the effect that: the government is contemplating regulating the market; the market will not be imposing any specific prices or rents; and that presumably meaning that rentals will remain for landlord and tenant to hammer out in the case of each rental agreement.

It is within such a context that our national system will be able to conform with the ECHR pronouncements that landlords will still be entitled to seek normal (but not abusive) profits, and that tenants will still be entitled to decent housing at decent prices.

If one sees all this within a context of the government being always ready to intervene whenever any signs appear that indicate abuses – such as, for example, increasing rents repeatedly in a short period to the same tenant, or asking for rent increases that clearly suggest his wanting the tenants out to rent to foreigners – then, possibly, yes some sense can be brought back to this sector by making sure that such, et simila, abuses will simply not be tolerated in this country.

Galdes leaves us all in a state of expectancy when he speaks of the introduction of “a transparent mechanism that can reflect the fair market price of property, and that the lack thereof or under-declaration is challenged, new ways are sought to manage [by who?] transactions between landlord and tenant, and more efficiency in judicial proceedings related to rent.......”.

He says that this way will provide a fair system for both landlord and tenant.  And so now everyone is waiting agog for this “transparent mechanism”.  Roll on the White Paper...

One last thing. Many, myself included, would have welcomed Galdes saying something about that other big, but also very much related, issue of the many long-vacant and unutilised properties, which many towns and villages still have spoiling their character and scenario.

Or will it be a case that this big problem too will feature in the White Paper? Would be good if that were to be the case.

John Consiglio teaches economics at the University of Malta.