Changes to regulations on the redemption of emphyteusis (ground rent) on government properties have created an uneven playing field and caused problems for the construction industry, the GRTU said today.

The changes were announced earlier this year and provide, among other conditions, that the owners may not demolish or redevelop the properties or change their use for 20 years. The properties may only be sold if a quarter of the sale price is given to the government, irrespective of the costs which the owner may have incurred.

The GRTU said the regulations were introduced without consultation and were unfair because they had been introduced abruptly. Those who had managed to benefit from a previous scheme therefore had been advantaged.

The GRTU said the new regulations were also detrimental to the construction sector since many sought to become owners of these properties in order to redevelop them, and this was discouraged by the new regulations.

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