ADPD warns rising rents are pricing people out as economic growth fuels housing crisis

ADPD – The Green Party has warned that Malta’s rental market is becoming increasingly “cruel”, with rising rents placing a heavy burden on low- and middle-income households, as the party blamed the country’s economic model for worsening housing insecurity.

Speaking at a press conference outside the Housing Authority offices in Floriana, party chairperson Sandra Gauci and spokesperson Mina Jack Tolu said a growing number of people have no choice but to rent, including those who do not qualify for bank loans, workers on low incomes, and individuals facing financial difficulties after separation or divorce.

Their comments followed the publication of a study by trade union Solidarjeta, which confirmed that rental rates continue to rise and that affordability is becoming increasingly out of reach for many households.

The party said economic growth driven by rapid population increases and tourism-related development was putting pressure on housing supply, infrastructure and residential communities. Homes previously used for long-term living are increasingly being converted into short-let tourist accommodation, reducing the availability of residential rentals and pushing prices higher, the party argued.

ADPD cited Housing Authority guidelines that housing costs should not exceed 25% of a person’s income, but said fewer than a quarter of rental properties meet that benchmark. Around 40% of rentals, they claimed, consume between 25% and 30% of monthly income, which they described as a heavy financial burden that can push people towards homelessness, especially when landlords terminate leases or rents rise beyond what tenants can afford.

The party also raised concerns about overcrowding and abusive practices in parts of the rental market, particularly affecting foreign workers. While government guidelines exist to curb abuse, ADPD questioned the level of enforcement, saying exploitative conditions and overcrowding continue to contribute to inflated rents.

Gauci and Jack Tolu criticised what they described as the lack of effective controls on how rents are set, arguing that prices are largely arbitrary and not linked to objective criteria such as property size, energy efficiency or access to amenities. They said the government had failed to introduce strong regulation, suggesting political reluctance to act against landlord interests.

ADPD said it would continue pressing for reforms to ensure housing affordability and stronger protections for renters as living costs continue to rise.