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Calls for comprehensive
revision of rent laws
by David Kelleher
A study on the present state of the property market and existing
problems makes a total of 19 recommendations to the government
on how best to improve the sector.
The study, carried out on behalf of the Building Industry Consultative
Council, recommends that given the low activity in the property
markets no further increases in negative taxation measures should
be introduced in the short term, as these will continue to further
depress such markets.
It also recommends that government intervention in the property
markets should be minimal, and if it does, this should not affect
directly the markets’ operations.
Speaking at a press conference yesterday to present the study
to the Minister of Finance, John Dalli and the Minister of the
Environment, Dr Francis Zammit Dimech, Robert Musumeci, chairman
of the BICC, said the Council was also calling on the government
to introduce measures to encourage people to restore old houses
and live in them. “The government is also encouraged to
introduce measures to re-open the market for rented property,”
Mr Musumeci said.
Mr Musumeci said most houses in various localities were being
purchased by young couples and this idea should be encouraged.
First, he said, it would allow for old properties to be restored
and secondly, the demand for new building areas would not be
so high.
He also suggested incentives for couples who choose to build
smaller houses, thus benefiting from lower building tariffs.
With regards to multiple owners, the BICC study recommends that
government should offer incentives to multiple owners of land
and property to release such properties on the market mainly
through improvements in legal provisions and procedures.
The BICC study also examines in depth the problems facing those
renting out property and the existing rent legislation. The
study says that a lack of inaction by successive governments
has led to problems of inertia in addressing the issue.
Acknowledging that the rent market is very important and that
it is not functioning properly, the BICC recommends that the
present rent legislation should be comprehensively reviewed
with the aim of establishing a true residential property rental
market.
“Such legislation must be acceptable to both sides of the
House of Representatives so as to present piece of mind to property
owners through appropriate provisions which guarantee that rented
properties will be regained at the end of the lease. This will
help the supply side of the rental market which is the true
problem,” the study says.
However, “such legislation should protect existing tenants
from excessive rental demands, but should establish specific
dates when such rentals will be terminated and the properties
returned back to their rightful owners.”
Finally the study recommends the adoption of the Private Public
Partnership (PPP) principle in most of its projects, and how
the principle can be best introduced in Malta.
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