Current Affairs
Low income persons will receive the difference of up to €10,000 in pre-1995 rent – PM

Low income persons, pensioners and persons receiving social benefits will receive up to a maximum difference of €10,000 in the new rent that they have to pay, according to the reform to address anomalies of pre-1995 rents.

Details of this reform were announced this morning at a press conference in Vittoriosa, during which Prime Minister Robert Abela explained how the new rent will establish 2% of the property’s actual value.

He added that a rent benefit will be introduced, where no one will pay more than he can.

The first category of persons who will benefit from this measure is that of pensioners and those who live with social benefits, who will be given a benefit that covers the increase in rent up to a maximum of €10,000 a year for every family.

The second category concerns tenants who work full-time, and will not pay more than 25% of their income on the rent so that they may enjoy a dignified quality of life. The received benefit will cover the difference between the 25% of their annual income and the amount of rent as established by the rent board. The grant will also be up to a maximum of €10,000.

In the case of persons who live in a high value property, as the difference in the new rent may reach over €10,000 a year, they will be given an alternative residence, similar to those who were evicted.

The Prime Minister said that this will affect over 10,000 families and the measure will reach a balance between the owner’s rights and the protection of tenants.

Social Housing Minisiter, Roderick Galdes, said that the reform reflects the society’s maturity. He thanked the cabinet for the social commitment it showed, while pledging more work in the social sector. Her also referred to the launching of the 153 freephone service for those who need more information.