Nearly 10,000 Properties in Malta Under Pre-1995 Rent Laws
Almost 10,000 properties across Malta and Gozo are subject to controversial pre-1995 rent laws, revealed Minister Roderick Galdes.
New figures presented in parliament show that around Malta there are about 9,700 such properties. The largest number of pre-1995 rental properties are located in Birkirkara (748), followed by Sliema (659), Hamrun (651), Qormi (511), Gzira ( 466), and New Village (445).
In Malta, some landlords remain bound by lease agreements made before 1995 when the government liberalized the rental market. This meant that they often had to charge rent that was well below market value, sometimes as low as € 200 a year.
Prime Minister Robert Abela announced major reforms to the pre-1995 lease agreement earlier this year.
Under new changes, landlords cannot dispose of tenants living under a pre-1995 lease agreement, but can now claim up to 2% of the market value of the rental property.
Abela said he hopes the changes will ensure that no one ends up without a roof over their head and that landlords receive fair compensation Now a new department will be set up to assist tenants and give them free legal advice if needed.
Any pensioner or beneficiary of social assistance in homes linked to a pre-1995 agreement will be granted benefits to cover all their rental costs from the government, up to € 10,000 per year per family.
Any tenants who enjoy a full-time job only pay a maximum of 25% of the total rent costs. Anyone living in a higher value property with an estimated rent of over € 10,000 per year will be given an alternative home by the government.
Going forward, an architect will be appointed to determine the value of a property, and all rent will be overseen by the Rent Regulation Board.
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