The Housing Authority is seeing an average of 100 rental contracts registered every day, with a total of 3,600 rental contracts having been registered since the implementation of the Private Residential Leases Act in January.

In a press conference at the Housing Authority in Floriana on Wednesday, Social Accommodation Minister Roderick Galdes said that the agency was seeing a median of 500 contracts being registered a week, with 23 per cent of the registrations being leases of two years and over.

Roderick Galdes

Mr Galdes said this was evidence that the system was working and proof that the authority was acting in an organized manner, noting that Housing has been the first government agency to implement the use of blockchain technology.

“This reform means more stability for property owners as well as for tenants. I am proud of what we have achieved so far and I am proud of both residents and landlords for understanding that this reform was necessary to achieve a regulated market that offers greater peace of mind to both parties,” Mr Galdes said.

The majority of registered contracts (85 per cent) do not exceed the sum of €1,000 per month in rent. Most of the registrations have originated from St Paul’s Bay, with Sliema, Msida and Marsascala close behind.

The amount of people benefiting from rent subsidies has more than doubled in a year with 1,500 families qualifying, up from 700 in 2019.

Housing Authority CEO Leonid McKay said the reform was working effectively in practice, chiefly because the new laws did not seek to protect one party at the detriment of the other but struck a necessary balance.

“It’s encouraging that property owners have understood that the law is introducing standards in the private rental industry for the first time and recognize the regulator’s role as one that facilitates the market and fights abuse. Comments we’re receiving from owners show clearly that they want good relationships with their tenants,” he said.

Last week the Malta Developer’s association issued a statement saying the introduction of the new rent laws was causing a dip in the rental market and claimed that landowners are reluctant to rent out under the new regime, which they’ve termed ‘restrictive’.

The MDA said that insecurity, different legal interpretations, restrictive rental conditions, bureaucracy and lack of freedom of contract were among the main reasons why the new law was 'not working' and harming the industry and the economy.