3,600 properties already registered under the new rent law
The success that is happening is proof of the organised manner in which the Housing Authority acts. We were the first government entity of that used the block chain system
Social Accommodation Minister Roderick Galdes yesterday said that 3,600 properties have already been registered under the new rent law in the two months it has been active.
He was speaking during a press conference at the Housing Authority in Floriana, during which he revealed the results of the two months of rent registration under the new rent law which was introduced on 1 January 2020. The results are based on registrations made till the 25 February.
“When I was introduced to this sector we found complete chaos as we never had a concrete legislation for it and we had to regulate it,” Galdes said.
“The success that is happening is proof of the organised manner in which the Housing Authority acts. We were the first government entity that used the block chain system.”
He explained that the 3,600 properties only covers those which started a contract this year. There might be other properties that started a contract last year and are waiting for it to end in order to register, so the number is expected to increase drastically in the coming months.
Statistics show that only 800 people required assistance from the authority to register as the other 2,800 registered on their own.
“This shows that we are having a good response from the people and I was convinced that this will happen,” the minister said, while acknowledging the positive impact that information packages on the subject released online and on the media have had.
He said that he is proud of both landlords and lessors as they understand the need to regulate these things as the law is not simply targeting the price of rent. Nonetheless, he did mention that he is proud of the fact that 85% of the registered properties do not exceed €1,000 per month in rent.
He added that in the coming week, the interface with available properties and locations will be available, which will help the leasing sector itself. He explained that most registrations made come from St. Paul’s Bay, followed by Sliema, Msida and Marsascala.
“People who are benefitting from the rent subsidies has doubled from last year, with 1,500 families benefitting from it compared to the 700 of last year,” he explained while pointing out that 23% of contracts registered show that the landlords are looking to lease their property for one year or more. This means that they are favouring sustainability over short rents.
Housing Authority CEO Leonid McKay agreed with the success that this reform has had and based it on three main reasons.
“Owners realised that this law was never intended to protect someone over another as there is a balance between the lessors and landlords,” he said. “If I learnt something, it is that most landlords want to have a good and long-term relationship with their lessors.”
Another reason why the reform works is because it is not aimed at introducing any new standards which did not exist together, but rather eliminating any form of abuse that might have been present before.
Finally, he credited the amount of study and research of the leasing sector that went into the development of this new rent law, which shows that the regulator is there to facilitate the leasing and registration process.