Government Urged to Close Rent Cap Loophole Affecting Tenants
A parliamentary petition in Malta calls on the government to eliminate a loophole in rent laws that allows landlords to evade the 5% annual rent increase cap by replacing tenants every year. The petition has gathered nearly 500 signatures and remains open until 27 December.
Proposed Solutions to the Loophole
- Maintain the 5% rent increase cap even when a tenant is replaced.
- Introduce measures to prevent evictions used solely to increase rent.
- Enhance enforcement by the Housing Authority to curb misuse of contract terminations.
- Promote longer-term leases and stronger tenant protections to reduce frequent relocations and the difficulties they cause.
Background and Context
The petition was initiated by Patricia Graham, founder of the EU Nationals and Malta Residents Advisory Group, established in 2012. Originally focused on utility bill issues, the group now addresses broader challenges facing foreign nationals living and working in Malta, including tenancy concerns.
The 5% cap on annual rent increases was introduced in 2019 amid a significant rise in the number of residents renting homes in Malta – a trend that continues to grow.
“We need stronger safeguards to prevent landlords from exploiting loopholes and to protect tenants from unnecessary displacement,” said Patricia Graham.
This petition highlights the need for updated regulations to ensure fair rental practices and better housing stability for tenants.
Author's summary: The parliamentary petition urges Malta to close a rent law loophole that enables landlords to replace tenants annually, bypassing rent increase limits and causing housing instability.