The Guardian of Future Generations has issued its initial reaction to the white paper regarding proposed changes to the rent laws, and while praising it, has said that the one-year mandatory minimum contract period proposed in the White Paper will not serve much.
The Guardian of Future Generations welcomed the recent publication called: 'Renting as a housing alternative,' describing it as long overdue and a positive step forward that should platform a sensible discussion on affordable alternative housing within the socio-economic realities.
"The unprecedented economic boom of recent times has brought more wealth into Malta's economy. This should not however blind us to the reality that there are still those who lag behind and the issues of these people should not be overlooked. The unleashed free market forces alone will not do the job. In prosperous times, there are still those who simply cannot afford to own a decent place where to call home. There are others who struggle with cost of living let alone in keeping up with soaring rents. The saddest reality of all is perhaps that in such difficult circumstances with the most vulnerable families it is often the well-being of the children that is also compromised."
"Malta is a nation of home-owners but it doesn't mean that the State should ignore the threats of a potential housing crisis should we ignore the signs and fail to take the necessary action now. "
The Guardian of Future Generations explains that there are various factors that could already contribute to such a crisis. "The influx of migrant workers that is so crucial for our growing economy is only one aspect of a far more complex story. Emerging trends that are practically reshaping the fabric of the Maltese family as we know it have to be looked into more profoundly: higher marriage breakdown rates are forcing more individuals to seek alternative accommodation. These persons are very often in dire financial straits."
The Guardian believes that the rents market issue should also be considered within the broader context taking into account social housing.
"The unacceptable procrastination to invest in social housing experienced over the last several years could signal that the first signs of a potential housing crisis are already there. Recent government project initiatives on social housing are certainly commendable but not enough and notwithstanding the budget measures for 2019 that should complement in a positive way. On the other hand, the White Paper proposal to explore options that could address social housing issues more effectively through sustainable public-private partnerships should be taken up as a priority. It is important that social housing projects are considered within the broader perspective of improving quality of life across localities."
"On private rental agreements, the Guardian appreciates that a policy whereby some kind of direct capping is imposed on the initial price of rents could indeed be counter-productive. It does not mean however, that subsequent rental increases on established agreements should be left entirely unregulated or allowed to happen sporadically; an adequate and fair mechanism is needed that primarily factors in the economic circumstances of genuine responsible tenants."
A new rents regulatory framework should enable the legislator to ensure that both landlords and tenants treat each other with respect, each shouldering their respective responsibilities as shall be prescribed by law, the reaction letter read. "Legal provisions should be set that expedite the resolution of disputes that arise between rental parties and penalties prescribed accordingly."
The Guardian views with interest the proposed model frameworks for Malta's rental accommodation presented in the White Paper. "Firstly, there must be enough incentives that result in an increase in the number of good quality properties placed on the rental market. However, these incentives should make it attractive for prospective landlords to make property available for lease on significantly longer lets and beyond the minimum mandatory period as prescribed by law."
"Realistically, the one-year mandatory minimum contract period proposed in the White Paper will not serve much, if at all, to alleviate the anxieties of most tenants who will still be forced to juggle between one transient 'home' and another within a relatively short timeframe. As always the most hard-hit shall be families where children are involved. A longer mandatory minimum contract period of not less than five years should be considered as long as prospective tenants reassure that they are in good faith. Notice of termination of tenancy should be issued within reasonable time prior to the expiry of the lease agreement."
"Nonetheless, a new regulatory mechanism should be flexible enough to include provisions covering leases of a shorter term than the mandatory minimum. This would enable the market to cater for a variegated demand from prospective tenants and also for changing circumstances of both landlord and tenant. Furthermore, it has to be recognised that the tenancy needs of Maltese locals are generally different from foreigners whose stay on the island may be of a less permanent nature."
"The genuine law-abiding tenant should be entitled to a more generous rent subsidy than at present. It is positive that government is already taking concrete action in that direction. Furthermore, the concern that is also voiced by the White Paper about shared tenancies is probably more than justified. The legislator should be enabled to look closely into the state of play with this kind of accommodation and ensure that all the desired standards are met."
The Guardian agrees that there should be a distinct Agency entrusted with the monitoring of the rental market in all its aspects including the registration of lease agreements. The proposed Agency should be in a position to synchronise its efforts with all other competent authorities not least with a view to curb on tax evasion, the letter read..
"The proposals set forth in the White Paper are already challenging. However the paper must surely represent only the very first step in a series of others that are needed for Malta to eventually adopt a more holistic long-term national strategy on accommodation that builds on the successes and experiences achieved so far - the vast majority are home-owners but there will always be need for a properly regulated rental market."
from The Malta Independent https://ift.tt/2SxOWdV
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