Seven out of every 10 property leases signed in 2020 were for a maximum period of two years, according to data published on Friday which also showed that the majority were located in St Paul’s Bay, Sliema, Msida, St Julian’s, and Gżira.

A new law governing how private residential properties are let out and managed came into force last year, and since then, 30,483 contracts have been registered with the Housing Authority.

By law, a contract has to be registered within 10 days from the start of the lease.

The Private Residential Leases Act was designed to better regulate how contracts are drawn up, and introduces a series of responsibilities on the landlord and tenant that are overseen by the Housing Authority.

Dispute resolution panel

In the meantime, the Housing Authority also set up a dispute resolution panel that is expeditiously resolving small issues regarding payments and maintenance that do not amount to more than €5,000.

“By the end of the year, 94 cases were submitted, most of which were decided within five days of the parties providing the necessary documents,” CEO Leonid McKay said on Friday when presenting the data.

“Most of the cases were about electricity and water issues as well as deposit complaints. The cases decided by the end of the year favoured the owners."

Meanwhile, a new section within the authority that was set up to support landlords and tenants with their queries has answered more than 28,000 phone calls.

This is the first time that statistics about the private residential lease market were gathered and analysed by the government. The government will next publish The 2020 Malta Residential Study - a detailed report by an observatory that is composed of economist Marie Briguglio and the Central Bank of Malta.

Social Accommodation Minister Roderick Galdes, who attended the briefing, said that the promised rental market reform guaranteed transparency, stability, and security. The success of the reform was in part due to a long consultation process, he added. 

Photo: Housing Authority

Number of leases by type:

• 27,897 long lets
• 2,216 shared space
• 370 short lets