The first published study on the residential rental market following the reform that entered into force in 2020
Following the 2020 reform, renting is no longer a temporary and unstable solution, but it has become an adequate housing alternative., said Minister for Social Accommodation Roderick Galdes during the launch of the first edition of the annual study on residential rents.
Minister Galdes explained that the sector has developed from one where speculation and abuse reigned, and the vulnerable suffered, to the current situation where the relationship between landlords and tenants has been strengthened.
“With the reform of the rental market, in addition to our aspiration of creating a well-functioning market out of residential rents, we also wanted an adequate alternative to housing for families,” claimed Minister Roderick Galdes.
Thanks to rent registrations, the reform has brought more security. The fact that in the first year alone 30,000 residential rental contracts were registered, shows that there is confidence in a system that provides the necessary protection and efficient remedies, said Minister Galdes.
The reform’s aim to increase long-term relations for greater stability has been achieved, as most rents have a minimum duration of one year while a portion of the market has opted to enter longer-term relationships.
While different circumstances have impacted the rental market over the first year since the law came into force, the private residential leases reform has been instrumental in stabilizing rents across the country, said Minister Roderick Galdes.
Housing Authority CEO Leonid McKay explained that in the first year since its entry into force the law is offering the necessary stability and predictability. Mr McKay said that through registration, the state has gained visibility of the rental sector, a factor that is facilitating policy development in the housing sector.
The residential rental study published on Monday shows that in the first year there were 30,483 residential rental contracts registered, with 92% of them being long-term residential leases, where the most common duration of the lease is one year while a portion of the market opted to enter into long-lasting relationships. 429 contracts were renewed with 87% of them keeping the same rent.
As expected, the private residential rental sector is concentrated in Malta with 16% of it concentrated in San Pawl il-Baħar, followed by Sliema and Gżira. In Gozo the largest locality to host private residential rentals is Żebbug.
78% of tenants rent apartments. The most prevalent size of rented apartments was recorded as being the two-bedroom configuration with 80% of the rented accommodation hosting no more than 3 people.