A coalition of seventeen organisations working in different sectors are today launching a document with a Proposal for Rent Regulation in Malta. Malta has almost no regulation in the rental market, and the law of the jungle currently applies. This is forcing many tenants to lead precarious lives, with only temporary roofs over their head and no place to call home. There is a pressing need for rules in the rental market in order to establish some fairness and to create more stability. Thus, we applaud the Parliamentary Secretariat for Social Housing for working on a White Paper about regulation in this sector, to be published shortly, and look forward to contributing to the consultation process.
The Proposal for Rent Regulation in Malta is based on the recognition that people have a fundamental human right to adequate housing. Skyrocketing rent prices over the last few years are hitting vulnerable groups the hardest, such as pensioners and low-income groups. Tenants regularly paying their rent are finding themselves forced out of their homes due to overnight exorbitant increases in the rent price requested, or having to use the largest part of their wage/pension for rent payment. This reality is also increasingly affecting other groups, such as the youth, some of whom have no other option but to live in rented places due to unaffordable property prices. As property prices continue their steep rise, the number of Maltese people living in rented places is destined to increase at a fast pace and, in a few years, it will not be uncommon for Maltese people to live in rented places. The introduction of effective rent regulation at this juncture is essential to ensure that the rental market is not driven exclusively by the urge for quick profits, without any consideration to the impact on individuals, society and the economy, but is sufficiently regulated for the benefit of all. We believe that landlords will benefit too from a regulatory framework since this will increase clarity and peace of mind. Rent regulation will not stop landlords from making profits out of rented property.
The rent regulation model in this document has been developed by looking at rent regulation laws in other European countries. In fact, Malta is one of the very few EU countries where there is no effective rent regulation in place. The type of rent regulation present in European countries ranges from controls on initial prices (present in countries such as the Netherlands, Austria, Denmark, Sweden and France) to regulating contract length and rent-price increases (present in countries such as Belgium and Germany).
It is to be underlined that the model in our proposal has no relation to pre-1995 rent legislation that existed in our country. The model we are proposing here would not impose any tenant-landlord relationship, other than that established in contracts that have the agreement of both in the context of clear and fair rules.
The main points of our proposal are:
1. A tax regime that incentivises long-lets through lower tax rates for longer leases
2. The creation of a state registry of properties on the rental market as well as the establishment of a public entity responsible for rent regulation
3. The registration of properties that are up for rent, where the first price set in the first contract will be considered as the “initial price”.
4. The possibility for landlords to increase rent-prices yearly during the duration of a contract by a percentage that does not exceed the cost-of-living-increase percentage. Once a contract expires, the landlord is allowed to draw-up a new contract with the same, or a different, tenant. In either case, the price set in the new contract cannot be higher than 10% of the last monthly rent paid under the previous contract. Besides the 10% limit, the price set in any new contract cannot be more than 25% higher than it was five years earlier. This is to avoid having landlords entering into short-term contracts in the knowledge that following each contract, they would be able to increase the rent by 10%.
5. The establishment of a Rent Price Index that lists prices in 1) different areas and 2) for different classes of property according to their size and quality. Landlords would input in the state registry specifications pertinent to their property. An initial price should not exceed 10% of the price listed for that particular category within the Rent Price Index. This would prevent abuse (such as setting unrealistically high initial prices) whilst giving landowners ample leeway in setting initial prices, since the Rent Price Index would in itself reflect market prices, and the initial price can even be 10% higher.
6. A system for the termination of contracts similar to that outlined in employment law.
7. Provisions for clear rules on deposited money, payment of utility bills and upkeep of property.
8. Protection for persons on existing lease agreements
9. The regulation of Agencies and a legal standing to a Tenants’ Union
10. A tax on empty rentable property that disincentivizes rent on the black market and increases the amount of properties for rent.
Rent regulation, which is the focus of our proposal, should only constitute one dimension of a strategy on affordable housing. Our country still lacks a comprehensive Housing Policy that aims to ensure the availability of affordable housing, including both affordable properties and affordable rent prices. Affordable housing depends also on other factors, such as the availability of social housing and the overall strategy with regards to property and construction. Thus, it is being suggested that rent regulation is placed within a broader National Action Plan on property and affordable housing.
The following organisations are putting forward the Proposal for Rent Regulation in Malta: Moviment Graffitti, Alleanza Kontra il-Faqar, Forum Komunita’ Bormliża, Malta Tenant Support, Malta Humanists Association, The Millennium Chapel, Żminijietna – Voice of the Left, aditus Foundation, Malta Gay Rights Movement, The Critical Institute, Spark 15, Mid-Dlam għad-Dawl, Women’s Rights Foundation, African Media Association Malta, Koperattiva Kummerċ Ġust, Integra Foundation and Third World Group Malta.
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Regoli fil-kera għal soċjetà aktar ġusta
Koalizzjoni magħmula minn sbatax-il organizzazzji li jaħdmu f’setturi differenti illum qegħdin ivaraw dokument bi proposti għal regoli fil-kera f’Malta. Malta m’għandha kważi l-ebda forma ta’ regolamentazzjoni fejn jidħol is-suq tal-kera u għalhekk dan is-suq illum jimxi fuq il-liġi tal-ġungla. Dan qed iwassal biex ħafna inkwilini jgħixu ħajja prekarja għax is-saqaf li għandhom fuq rashom huwa temporanju ħafna, u għalhekk qegħdin f’sitwazzjoni fejn dawk li jgħixu f’post mikri ma jħossux li d-dar li joqogħdu fiha hija darhom. Hemm ħtieġa urġenti ta’ regoli fis-suq tal-kera sabiex ikun hawn iktar ġustizzja soċjali u tinħoloq ċerta stabilità. Għalhekk aħna kuntenti li s-Segretarjat Parlamentari għall-Akkomodazzjoni Soċjali qed jaħdem fuq White Paper dwar ir-regolamentazzjoni ta’ dan is-settur, li se tiġi ppubblikata fi żmien qasir. Aħna biħsiebna nagħtu l-kontribut tagħna fil-proċess ta’ konsultazzjoni.
Il-proposti għal regolamentazzjoni fil-kera f’Malta huma ibbażati fuq l-għarfien li kulħadd għandu dritt fundamentali li jkollu dar diċenti fejn jgħix. Il-prezzijiet m’għola s-sema, li dejjem baqgħu jogħlew f’dawn l-aħħar snin, qegħdin jolqtu lill-gruppi l-aktar vulnerabbli bħall-pensjonanti u dawk li għandhom paga baxxa. Fost dawk li jgħixu f’post mikri hawn min qed isib ruħu imġiegħel jitlaq minn fejn joqgħod minħabba li mil-lum għall-għada qed tiġi mitluba żieda eżorbitanti fl-ammont tal-kera li trid titħallas. Hawn ukoll min qed ikollu juża il-parti l-kbira tad-dħul tiegħu mill-paga jew mill-pensjoni biex iħallas il-kera. Din ir-realtà qegħda tolqot dejjem iktar kategoriji ta’ nies, fosthom żgħażagħ, li xi wħud minnhom m’għandhomx għażla oħra ħlief li jgħixu f’post mikri minħabba li ma jkunux jifilħu jixtru propjetà. Hekk kif il-prezzijiet tal-propjetà jkomplu jogħlew, in-numru ta’ Maltin li jkollhom jgħixu f’post mikri żgur li se jkompli jiżdied u fi ftit taż-żmien mhux se tkun xi ħaġa rari li nies Maltin jgħixu f’postijiet mikrija. L-introduzzjoni ta’ regolamentazzjoni effettiva tal-kera f’dan iż-żmien partikolari hija essenzjali biex nassiguraw li s-suq tal-kera ma jkunx immexxi biss mill-kilba għall-profitti f’qasir żmien, mingħajr l-ebda ħsieb dwar l-impatt fuq l-individwi, fuq is-soċjetà u l-ekonomija, imma jkun regolat b’mod suffiċjenti għall-ġid ta’ kulħadd. Aħna nemmnu li s-sidien tal-kera ukoll jaqblilhom li jkollhom struttura li tirregola l-kera għax b’hekk l-affarijiet ikunu aktar ċari u jkun hemm aktar serħan il-moħħ. Kera irregolata mhux se twaqqaf lis-sidien tal-kera milli jagħmlu l-profitti mill-kirjiet tal-propjetà tagħhom.
Il-mudell ta’ regolamentazzjoni tal-kera f’dan id-dokument ġie żviluppat wara li ħarisna lejn liġijiet li jirregolaw il-kera f’pajjiżi oħra Ewropej. Fil-fatt, Malta hija waħda mill-ftit pajjiżi fl-UE li m’għandhiex regolamentazzjoni tal-kera. It-tipi ta’ regolamentazzjoni tal-kera li jeżistu f’pajjiżi Ewropej ivarjaw minn kontrolli fuq il-prezz tal-kera stabbilit fil-bidu nett (preżenti f’pajjiżi bħall-Olanda, l-Awstrija, id-Danimarka, l-Isvezja u Franza) sa regolamentazzjoni rigwar it-tul tal-kuntratti u ż-żieda fil-prezzijiet tal-kera (preżenti f’pajjiżi bħall-Belġju u l-Ġermanja).
Nixtiequ nsostnu l-mudell li qed nipproponu m’għandu l-ebda rabta mal-liġi tal-kera li kienet teżisti f’Malta qabel is-sena 1995. Il-mudell li qed nipproponu hawnhekk mhux qed jimponi xi relazzjoni bejn is-sid u l-inkwilin għajr dik li tkun stabbilita fil-kuntratt, li fuqha jkun hemm il-qbil tat-tnejn f’kuntest ta’ regoli ċari u ġusti.
Il-punti ewlenin tal-proposta tagħna huma dawn:
1. Sistema ta’ tassazzjoni li tħajjar kirjiet fit-tul permezz ta’ rati ta’ taxxi aktar baxxi għal kirjiet fit-tul;
2. Il-ħolqien ta’ reġistru tal-istat tal-propjetajiet li hemm fis-suq tal-kera kif ukoll it-twaqqif ta’ entità pubblika responsabbli mir-regolamentazzjoni tal-kera;
3. Reġistrazzjoni ta’ propjetajiet li qegħdin għall-kera, fejn l-ewwel prezz li jiġi mniżżel fl-ewwel kuntratt ikun meqjus bħala il-“prezz tal-bidu”;
4. Il-possibilità li s-sid iżid il-prezz tal-kera kull sena waqt iż-żmien tal-kuntratt b’perċentwal li ma jkunx akbar mill-perċentwal taż-żieda tal-għoli tal-ħajja. Hekk kif kuntratt jiskadi, is-sid ikun jista’ jagħmel kuntratt ġdid mal-istess inkwilin jew ma ieħor ġdid. Fi kwalunkwe każ, il-prezz stabbilit f’dan il-kuntratt il-ġdid ma jistax ikun ogħla minn 10% tal-valur tal-aħħar kera ta’ xahar li tkun ġiet imħallsa fil-kuntratt ta’ qabel. Apparti il-limitu ta’ 10%, il-prezz stabbilit f’kuntratt ġdid ma jistax ikun ta’ aktar minn 25% ta’ dak li kien ħames snin qabel. Dan biex sidien ma joqogħdux jagħmlu kuntratti qosra bil-ħsieb li kull darba jkunu jistgħu iżidu l-prezz b’10%;
5. It-twaqqif ta’ Indiċi tal-Prezzijiet tal-Kera fejn ikun hemm imniżżel il-valur tal-propjetà fir-rigward ta’ 1) inħawi differenti u 2) tipi differenti ta’ propetja skont il-qies u l-kwalità. Is-sidien ikunu jridu jniżżlu id-dettalji tal-propjetà tagħhom f’dan ir-reġistru tal-istat. Il-prezz tal-bidu ma jistax ikun aktar minn 10% tal-valur indikat għal dik il-kategorija partikolari hekk kif imniżżla fl-Indiċi tal-Prezzijiet tal-Kera. B’hekk jiġi mnaqqas l-abbuż (per eżempju billi persuna tistabbilixxi prezz tal-bidu għoli ħafna) filwaqt li jagħti lis-sidien biżżejjed flessibilità biex jiddeċiedu l-prezz tal-bidu. Dan għaliex l-Indiċi tal-Prezzijiet tal-Kera ikun ibbażat fuq il-prezzijiet tas-suq, u l-prezz tal-bidu jista’ anke jkun 10% ogħla minn dak stabbilit fl-istess indiċi;
6. Sistema biex jintemmu kuntratti fuq linji simili għal dawk li jinsabu fil-liġi tal-impjiegi;
7. Il-provediment ta’ regoli ċari dwar flus depożitati, ħlas ta’ kontijiet tad-dawl u l-ilma u dwar iż-żamma tal-propjetà;
8. Il-protezzjoni ta’ persuni li qegħdin fi ftehim ta’ kera eżistenti;
9. Ir-regolamentar ta’ aġenziji, u l-għarfien legali ta’ Unjon tal-Inkwilini;
10. Taxxa fuq propjetà vojta li tista’ tinkera, sabiex jiġu evitati kirjiet fuq il-black market u jiżdied l-ammont ta’ propjetajiet għall-kiri.
Ir-regolamentazzjoni tal-kera, li hija l-qofol
tal-proposti tagħna, għandha tkun dimensjoni waħda biss fi strateġija
aktar wiesgħa ta’ housing affordabbli. Pajjiżna għad m’għandux politika
komprensiva ta’ Housing li l-għan tagħha jkun li tassigura li jkun hawn
prezzijiet ta’ djar affordabbli, kemm f’dik li hija kera kif ukoll
propjetajiet għall-bejgħ. Prezzijiet ta’ djar affordabbli jiddependu
minn fatturi oħra bħad-disponibilità ta’ housing soċjali u l-istrateġija
fir-rigward ta’ propjetà u kostruzzjoni. Għalhekk li qegħdin
nissuġġerixxu huwa li r-regolamentazzjoni tal-kera tkun parti minn Pjan
ta’ Azzjoni Nazzjonali usa dwar propjetà u housing affordabbli.
Dawn l-għaqdiet qed iressqu l-proposta għal regolamentazzjoni fis-suq tal-kera:
Moviment Graffitti, Alleanza Kontra il-Faqar, Forum Komunita’ Bormliża,
Malta Tenant Support, Malta Humanists Association, The Millennium
Chapel, Żminijietna – Voice of the Left, aditus Foundation, Malta Gay
Rights Movement, The Critical Institute, Spark 15, Mid-Dlam għad-Dawl,
Women’s Rights Foundation, African Media Association Malta, Koperattiva
Kummerċ Ġust, Integra Foundation u Third World Group Malta.
