System will work if tied to an adequate stock of social housing – AD

The new system being proposed for the property market will only work if it is tied to an adequate stock of social housing, Green Party Alternattiva Demokratika said yesterday.

“The White Paper proposals dealing with the regulation of the residential property market are generally a step forward,” AD Chairman Carmel Cacopardo said.

“If implemented they will undoubtedly serve to ensure that the residential property market is stable and fair to both landlords and tenants. There is however a need for a detailed consideration of the proposals to ensure that unnecessary difficulties are avoided.”

He added: “As aptly pointed out in the White Paper, in the past Malta had rigid systems of control which negatively impacted the rental market, at times going from one extreme to the other.

“It is therefore reasonable that, subject to the White Paper proposed exceptions, the minimum length of leases be of one year and that adequate notice be given when leases will not to renewed. It is also about time that deposits requested by landlords relative to damages, unpaid bills or other matters should be regulated by law as this is a matter on which various conflicts arise continuously.

“It was also necessary to ensure that possible variations to the rent paid throughout the duration of the lease are properly regulated as it is necessary for both landlords and tenants to be fully aware of all the rights and duties arising from lease agreements.”

Cacopardo added: “When considering the White Paper proposals on the determination of leases, Alternattiva Demokratika thinks that the proposed exceptions which seek to justify an early determination of a lease agreement by landlords, for own use, in order to facilitate sale with vacant possession, or for redevelopment, should be discarded.

“The reasons which the White Paper uses to justify early determination should only be acceptable for non-renewal of leases but not for their early termination.”

In order for the residential property market to stabilised, it is not enough to regulate private sector leasing, Cacopardo said. “It is also important that access to social accommodation available is facilitated for the vulnerable sectors.

“Social accommodation should not be sold but used as intended – as social accommodation.”