The Malta Institute of Management welcomes the Government’s publication of the White Paper on rent reform as a step in the right direction to solve one of the longest standing injustice with property owners.

As stated in its submission over two years ago, the Institute feels that nothing short of a complete overhaul of the archaic rent laws will end over sixty years of suffering which legitimate property owners had to endure.

The Institute recognises that in areas of residential housing a transition period is required so as not to create sudden hardships. MIM agrees with the proposal that the ‘inheritance of leases’ will be eliminated, albeit over a period of time, but it notes with satisfaction , that the White Paper includes proposals to eliminate abuses in the area.

The proposed minimum rate is still way off to provide adequate compensation to property owners, who are being asked to continue to subsidies tenants,. The Institute feels that the minimum rent for housing should be means tested through which the need for social assistance can be established

With regard to commercial property, MIM feels that the twenty year transition period is way too long. In its submission in 2005, the Institute had called for the immediate liberalisation of commercial leases. While commercial leases of publicly listed companies are being liberalised, owners of other commercial property have to wait 20 years.

While one understands that some tenants may have invested in the leased commercial property, surely a maximum ten year period should be enough for one to recover his investment. One needs to remember that the rent reform has been on the local agenda for the last 15 years at least and no one can say that he has been caught by surprise.

While agreeing with a timely consultation with all representative bodies and society at large, the Institute reminds Government that it has the legislative powers to take concrete action to alleviate the hardship which landowners have had to endure for years on end.