The developments and evolution of the rental market in the last fifteen years were discussed at a conference during which the Minister for Social and Affordable Housing Roderick Galdes listed the reforms carried out in this area.
He said that from a sector that used to operate on its own, in 2020 the Government initiated a strong reform that paved the way for a modern rental market. A legislative framework was introduced for the first time, which began to make registration mandatory for private rental contracts; the shortest possible lease period was established, while the Housing Authority became the regulator of the private rental market.
Minister Galdes announced that in the last five years, the number of rental contracts has increased from around 27,000 at the end of 2020 to more than 71,000 at the beginning of October this year. He said that the Government will continue to work to expand the stock of affordable housing in order to reduce pressure on the private market. He mentioned as an example how the expenditure on the housing benefit scheme, a rent subsidy, has increased from €1.6 million in 2017 to almost €11 million in 2024.
To foster greater stability in the market, said Minister Galdes, the Government has introduced fiscal incentives for long-term rentals while a panel has been created to quickly resolve disputes between landlords and tenants in a transparent and fair manner. The reform also led to the creation of a rental register which has become an indispensable tool for analysing market trends, identifying abuses and pressures on rental affordability.
The minister referred to the legislative amendments of last September which were the result of an open and continuous dialogue between the Ministry, the Housing Authority, landlords, tenants, estate agents and community representatives. The legislative amendments that were introduced sought to reduce bureaucracy, abuses and introduced limits on the number of residents that can be in a bedroom. Minister Galdes stressed that this was a step towards market equilibrium to protect the rights of both landlords and the well-being of residents.
The Chief Executive of the Housing Authority, Matthew Zerafa, stated that, “The rental sector has developed into a market with strong economic prospects that attracts investment. We are using the Authority’s studies and knowledge to strengthen it in a way that remains sustainable and dynamic for the needs of Maltese people and families in their daily lives.”
