The Chamber of Commerce has welcomed a court's landmark ruling declaring that the current legal regime which regulates pre-1995 leases breaches landlords’ fundamental rights and is effectively unconstitutional.

It said it had raised doubts on the current laws in the past, even suggesting that they were in breach of the fundamental human right to own and enjoy private property.

In the current situation, it said, property owners were often stuck leasing out their property for cheeky amounts which were determined decades ago, having also to foot the bill for maintenance costs out of pocket which often runs into the thousands. This situation was made more unacceptable when property leases were inherited, prolonging the unjust situation further.

The Chamber reiterated its view that measures that ensure fair market rental value to landlords of pre-June 1995 leased properties, such as equitable means testing mechanisms, would ensure that social justice was achieved with the landlord, while also potentially increasing the supply of affordable accommodation.

"Numerous tenants may be artificially holding on to properties leased under pre-June 1995 lease agreement conditions due to the insignificant annual cost. If the annual cost does not remain insignificant, such tenants would likely terminate the lease agreement, hence allowing the landlord to place the property on the private rental sector,”  it said.

It called for the introduction of a reliable and functioning Market Value Property Index for the scientific determination of fair market (rental) value of property depending on size, location and amenities.

It also called on the government to speedily introduce all the necessary means to address this situation of injustice.