Pre-1995 rent subsidies cost government €7 million this year

The government’s reform to handle pre-1995 rents has cost it around €7 million in subsidies to over 2,000 people whose residences were subject to such rental agreements.

Minister for Social and Affordable Housing, Roderick Galdes, spoke at a press conference on pre-1995 rental agreements, highlighting the government’s action on a significant issue impacting many landlords and tenants under long-standing rental contracts.

Minister Galdes explained how the government took decisive action to address this challenge, which affected a substantial number of landlords and tenants with outdated rental agreements. “Today, we are seeing the positive outcomes of the historic amendments we made to the law governing pre-1995 rentals. We acted promptly so that while landlords receive adjusted rent, tenants don’t face the risk of being displaced from homes where many of them were born and raised their families,” he stated.

The Minister further emphasized the balance the government achieved between the rights of landlords and tenants. “Today, we present the results: so far, the Housing Authority has assisted over 2,141 people through the pre-1995 rent subsidy. This means that 2,141 individuals have been able to continue living in homes they have lived in for years, without facing financial pressures they cannot bear,” added Minister Galdes.

This subsidy was described as a vital measure that has made a significant difference in the lives of Maltese people.

In 2024 alone, through the end of this month, the Housing Authority will have allocated just under €7 million for this subsidy. The Housing Authority also provides free legal assistance to tenants with pre-1995 leases. In 2023, 694 tenants received free legal aid, while so far this year, 584 tenants have benefited from this support. Minister Galdes reiterated that this measure offers peace of mind to tenants, providing free legal assistance throughout their entire judicial process.

“As announced in the 2025 Budget, we will continue to support families by strengthening the budget for social and affordable housing, ensuring that our citizens live in safe homes that also offer dignity and a high quality of life. Through the 2025 Budget, this government remains committed to supporting tenants, including those under the pre-1995 rental law,” concluded Minister Roderick Galdes.

Housing Authority CEO Matthew Zerafa stated, “We responded urgently to the realities of pre-1995 rentals and are constantly monitoring, studying, and strengthening this service to ensure stability and peace of mind for thousands of Maltese families.”