Developers call for more clarity on pre-1995 rent law reform

The Malta Developers Association has called for more clarity on the pre-1995 rent law reform as it welcomes the government's initiative to address the matter.

The association acknowledged that it was not easy to find the right balance and commended the government for tackling this difficult task.

However, the MDA said there are still various aspects that need to be addressed.

“The process with which the landlord will receive the compensation is not yet clear. An expedient and transparent process is required,” the association pointed out.

The MDA also highlighted that the process with which the valuation would be carried out has not yet been established. “The valuation must be carried out by professionals and must reflect the current market price,” it added.

The association also called for a means test to be carried out "diligently" to eliminate and cut down on abuse.

On Saturday the government announced that landlords of properties bound under pre-1995 leases would be able to claim up to 2% of the property’s market value in rent.

The government will be paying the additional rental costs thousands of families are expected to face as a result of constitutional challenges to antiquated rent laws. Almost 10,000 families will be affected by the reform.

READ ALSO: Further clarification needed on pre-1995 rent reform - Malta Chamber of Commerce