The Parliament has voted unanimously in favour of the Controlled Residential Leases Reform Bill.
Minister for Social Accommodation Roderick Galdes described this achievement as a historic step forward towards ensuring vulnerable protection to tenants and adequate income to landlords.
Minister Galdes stated that this government was courageous enough to address anomalies in the rental market which past administrations failed to tackle. This reform is addressing issues that remained unresolved since the 1920s, after it was guaranteed that the housing sector was prepared for such changes.
With the introduction of the new law, the government is relieving the burden of social accommodation from landlords, ensuring that this is the last generation of tenants which shall benefit from the protection of controlled leases. With the introduction of an automated mechanism for annual increases, landlords are entitled to a fair return on their property which is also reflective of the open market, allowing for increases connected to adjustments in the property market.
This fair balance has been achieved through a strong rent benefit which can reach the yearly maximum of €10,000. Tenants who are in full-time employment and are considered as deserving social protection by the Board shall receive a benefit that ensures that not more than 25% of their income is spent on rent. The benefit will also absorb the full increase in rent if the tenant is a pensioner.
Minister Roderick Galdes declared that these legislative changes are a historic step forward, and its success could only be realised through an efficient and uniform process and the creation of enhanced affordable and adequate housing options. He also described how this law is the result of an extensive and inclusive consultation process through which the government listened and decided responsibly.
