Over 3,600 rental contracts have been registered with the Housing Authority ever since a landmark reform came into force at the start of the year.

That’s an average of close to 500 registrations ever week since 1st January 2020.

Speaking at a press conference, Minister for Social Housing Roderick Galdes revealed that close to 23% of the contracts are for two years or more, providing much-needed stability for both tenants and landlords in the market.

“I’m proud that we’ve been able to do so much already, and I’m even more proud that we’re seeing more tenants and landlords agreeing that the reform was necessary for us to have a regulated market that gives peace of mind and stability to both parties,” he said.

Before the reform, Galdes explained, not a single piece of information on the market existed, leading to an unrealistic market.

The new regulations, which will be headed by the Housing Authority, essentially encourage landlords to register their rental properties with the authorities and imposes stricter terms on contracts and the conduct on both landlords and tenants.

Landlords will need to register each rental contract. It must include details like the rental agreement and the price per room.

Increases in price can only happen once a year and cannot be increased by more than 5%.

No contracts can be terminated, and tenants will also need to be notified at least three months before their contracts expire. If not, the contract will roll-on. Tenants will also need to inform the landlords before they intend to leave.

People failing to follow the regulations can face a fine of between €2,500 and €10,000.

It has divided opinion, with Malta Developers’ Association claiming that just two months into the new system, the rental market was already showing “a significant dip” and that landowners are “increasingly reluctant” to rent out under the “restrictive regime”.

Figures seem to prove otherwise. However, it remains to be seen what the statistics will look like by the end of the year.