The government should seek to establish a new permanent rent regime applicable for all rented property to be introduced in stages during a reasonable transitional period, the Malta Developers’ Association said.
It was referring to this week’s landmark Constitutional Court decision, whereby the current legal regime regulating rents of properties leased before June 1995 was declared as breaching landlords’ fundamental rights.
Read: Landmark judgment opens pre-1995 leases to scrutiny
Currently, owners of property that were rented out prior to June 1, 1995, had no right to refuse renewal of the lease and had to make do with a ‘fair rent’, despite soaring market values.
The court ruled that this regime created an unjust imbalance between the rights of the owners and those of the tenants, with the former having to shoulder, for years on end, the social burden induced by the current legislation.