The amendments to rules on the redemption of ground rent on government properties have created an uneven playing field, causing problems for the construction industry, the Chamber for Small and Medium Enterprises - GRTU, said.

The changes were announced earlier this year and state, among other conditions, that owners may not demolish, redevelop the properties or apply to change their use for 20 years.

The properties may only be sold if a quarter of the sale price is paid to the government, irrespective of the costs the owner may have incurred.

The regulations were introduced without consultation and were unfair because they had been introduced abruptly, the GRTU said.

The new regulations were also detrimental to the construction sector because many became new owners to redevelop the properties, which was discouraged by the new laws, it added.

While the government had every right to change its policies, it should consult those who were affected while introducing mitigation measures, the GRTU said.

However, the government said these changes were made following several cases of abuse where properties were redeemed for a few hundred euro, and then sold for hundreds of thousands within days.

These schemes were never meant to facilitate speculation, the Land Department said in a statement.

According to the agreement, properties transferred from the Church to the State could only be used for residential and social purposes and speculation did not qualify as a social purpose, it said.

The regulations were there to enable those with temporary ground rent to become owners of their residence, and not to facilitate speculation.

Under the new regulations, the transfer of properties between members of the same family, legally separated couples and persons with disabilities was still allowed.