White Paper on rent regulation welcomed but high rent prices not addressed – NGO coalition

While acknowledging that the White Paper on rent regulation is a positive step forward, more needs to be done to address the high rent prices, a coalition of NGOs said yesterday.

Speaking at a press conference, 20 NGOs said they welcomed the White Paper published on Monday and noted that a number of their proposal had been taken on board.

Calling the current rental market situation a ‘jungle’, Andre Callus from Moviment Graffitti explained that current rent contracts were too short, creating a sense of instability for the tenant.

The NGOs suggested combining the two models, as proposed in the White Paper, to provide a minimum contract period as well as tax incentives connected to contract-length.

The White Paper also noted a number of exceptions that landlords to terminate lease agreements before they expire. The NGOs noted that such exceptions should only apply after the lapse of three years. In addition, a compensation mechanism should exist for the tenants should they be required to vacate the property before the contract expires.

Callus explained that the stabilisation of rental prices does not mean landowners cannot make money. Proposals by the NGOs regarding rent prices include a maximum increase per year to be pegged to the cost-of-living increase, not the property price index, as established in the White Paper.

Furthermore, there should also be a rent value index which evaluates the rent according to the value and type of property, the NGOs suggested. Callus explained that this would enhance public knowledge on the private rental market and reduce the risk of landlords setting high prices.

The NGOs also proposed that when a new contract is started the rent price should not increase by more than 10 per cent of the last monthly rent paid under the previous contract. This applies if the contract is renewed or if a new tenant rents the property.

Strong dissuasive measures and sanctions are required in cases where contracts are not registered, the NGOs believe. They suggest that when landowners do not provide a contract the tenant should be protected from eviction.

Callus explained that a procedure should be set up when tenants report landowners for such irregularities whereby a tenant is guaranteed a three-year lease at a rate less than the market price, as set by a public authority.

Other measures brought forward by the NGOs including the setting up of a tenants’ union with legal standing and a nationwide information campaign.

Callus also said they are in ‘perfect agreement’ with the estab- lishment of a public agency, subsidies, deceleration of deposited money, provision of a standard contract template as well as tenants’ access to water and electricity bills.

One point that was not included in the White Paper, Callus noted, is the protection of existing tenants as they might end up in a desperate situation. The NGOs believe that these tenants run the risk of being forced to leave the property following the enactment of such a regulatory framework.

The NGOs propose that existing tenants continue living in the property for not less than onethird of the time they have been living in the unit. Any rent-price increase in such cases should exceed 10 per cent of the price paid before.

While agreeing that the housing supply should not depend entirely on the private sector, the NGOs see no benefits in a publicprivate partnership. They suggested that government along with non-profit setups should work together to build units to be leased at affordable prices.

Yana Mintoff from Forum Komunita’ Bormliza noted that in just one month she had met six families that had to leave their homes because of the increase in rent prices.

She also mentioned that the prices of basic essentials like bread and milk are on the increase which is affecting people.

The recommendations were endorsed by 20 NGOs including Moviment Graffitti, Malta Tenant Support, Women’s Rights Foundation, Third World Group and The Millennium Chapel