Chapter 116 – Rent Restriction (Dwelling Houses) Ordinance

R E N T R E S T R ICT IO N (D WELLIN G H O U SES)

CHAPTER 116

RENT RESTRICTION (DWELLING HOUSES) ORDINANCE To restrict the rent of dwelling houses, and to make certain provisions in respect of the letting thereof. (2nd October, 1944)* ORDINANCE XVI of 1944, as amended by Ordinance XXIX of 1947;

Acts: V of 1947, I of 1957; Emergency Ordinance XIV of 1958;

Ordinances: VI of 1959 and XXV of 1962; Legal Notices: 4 of 1963 and 46 of 1965; Acts: XXII of 1976, XI of 1977, XIII of 1983, VIII of 1990 and XXXI of 1995 and XXIV of 2021; and Legal Notice 409 of 2007.

Art. 1

The short title of this Ordinance is the Rent Restriction (Dwelling Houses) Ordinance.

Art. 2

In this Ordinance - "agricultural land" does not include the garden of a house or building, or land within the precincts of a house or building; "Board" means the Board constituted under the Reletting of Urban Property (Regulation) Ordinance. For the purposes of this Ordinance the Board shall have the same powers and shall proceed in accordance with the same rules of procedure, so far as applicable, as are provided in the said Ordinance; "dwelling house" means a building, a part of a building separately let, or a room separately let, which is let mainly as a dwelling or place of residence, and includes land occupied with the premises under the tenancy, but does not include a building, part of a building or room when let with agricultural land; "fair rent" means (i) in respect of an old house, the rent which might reasonably be expected in respect of an old house regard being had to the average rents prevalent on the 31st March, 1939, as shown on the registers of the Land Valuation Office in respect of comparable dwelling houses in the same or in comparable localities:

Provided that where, after the 31st March, 1939, structural alterations or additions in a house, whether old or new, have been carried out which, in the opinion of the Board, have enhanced the rental value of the house and in respect of which or, as the case may be, of a part of which, no compensation has been paid or is payable under the provisions of the War Damage * See article 1 of the Ordinance, as originally enacted, part of which has been omitted under the Statute Law Revision Act, 1980, and Proclamation No. VII of 29th September, 1944.

Short title.

Amended by:

V. 1947.5.

Interpretation.

Amended by:

XXIX.1947.3;

V.1947.2; I.1957.2;

XXV. 1962.5;

L.N. 4 of 1963.

R E N T R E S T RIC TIO N (D WELLIN G H O U SES) Ordinance, 1943*, and no amount has been paid or is payable by way of a grant by the Government of Malta, the rent shall be increased by an amount which, in the opinion of the Board, corresponds to the enhancement of the rental value and which shall in no case exceed a return of three and one quarter per centum a year on the capital outlay on the alterations or additions (excluding any interest on loans or in respect of idle capital) or, as the case may be, on the part thereof in respect of which compensation has not been paid and is not payable under the provisions of the War Damage Ordinance, 1943*, and no amount has been paid or is payable by way of grant by the Government of Malta, in every case as proven by the landlord to the satisfaction of the Board or, in default, as assessed by the Board; and (ii) in respect of a new house, a sum equivalent to a return of three per centum a year on the freehold value of the site and of three and one quarter per centum on the capital outlay on construction (excluding any sum which has been paid or is payable by way of a grant by the Government of Malta and any interest on loans or in respect of idle capital) as proven by the landlord to the satisfaction of the Board or, in default, as assessed by the Board:

Provided that where a payment under the War Damage Ordinance, 1943*, is made by or is due from the war damage account in respect of a former building out of which or on the site of which a new house is erected in whole or in part, for the purpose of computing the fair rent of that new house the return on that part of the capital outlay thus contributed by or due from the war damage account shall in no case exceed one year’s fair rent of the former building as on 31st March, 1939, or three and one quarter per centum for one year on that part of the capital outlay, whichever is the less; (iii) in respect of a scheme house, an annual sum to be determined by agreement as provided in article 5(4); "landlord" includes any person deriving title under the original landlord; "Land Valuation Officer" means the officer appointed as such by the Prime Minister for the purposes of the Developed Land (Valuation) Ordinance; "let" includes sub-let; *Repealed by Act XXIX of 1980 (Chapter 289).

R E N T R E S T R ICT IO N (D WELLIN G H O U SES) "new house" means any dwelling house which, apart from fittings, decoration and alterations, even if structural, was not complete or ready for use on the 31st March, 1939; "old house" means any dwelling house which, apart from fittings, decoration and alterations, even if structural, was complete or ready for use on the 31st March, 1939; "scheme house" means a privately owned new dwelling house designed to be separately let towards the construction of which the Government has made a grant under a house building scheme; "tenant" includes sub-tenant, and "tenancy" includes subtenancy.

Art. 3

Any repair or rebuilding of a dwelling house, effected under a temporary works payment or under a cost of works payment or under or in view of a value payment, each as defined in the War Damage Ordinance, 1943*, or any addition to or alteration of the structure of a dwelling house shall not operate so as to change the old or new nature of the house, notwithstanding that the plan of the structure but not the nature and general dimensions thereof may have been materially altered.

Repair, rebuilding and alteration of a house or additions thereto, paid for under War Damage Ordinance, do not change its nature.

Added by:

XXIX. 1947.4.

Art. 4

Fair rent.

Amended by:

I. 1957.3;

VI. 1959.3;

XXII. 1976.4;

XIII. 1983.4,5;

L.N. 409 of 2007.

R E N T R E S T RIC TIO N (D WELLIN G H O U SES) definitely, only by the Board under article 5(2).

Renewals of tenancy and new tenancies.

Amended by:

I. 1957.4;

XIV. 1958.2;

XXV. 1962.5;

XI. 1977.2;

XIII. 1983.5;

L.N. 409 of 2007.

Art. 5

of -

During the twenty-eight working days following the day of the agreement either the landlord or the tenant may apply to the Board for an adjustment of the rent or of the conditions so agreed to and any adjustment thereupon made by the Board shall be retrospective to the initial day of the agreement, or, alternatively, (ii) the landlord, before the commencement or renewal of the tenancy, may apply to the Board to fix the fair rent definitely.

R E N T R E S T R ICT IO N (D WELLIN G H O U SES)

Provided that such house was not already let on the date of the enactment of this Ordinance, and provided further that, on notice being given by the landlord to the last former tenant in accordance with the provisions of article 1597 or 1598 of the Civil Code, the last former tenant signifies his intention of availing himself of the right of preference granted by this sub-article within the time and in the manner set forth in article 1596 of the Civil Code.

Art. 6

The landlord or the tenant may apply at any time to the Board to determine the fair rent of the dwelling house concerned (other than a scheme house) unless - Applications to the Board.

Amended by:

I. 1957.5. (i) the fair rent of the dwelling house has already been established by the Board; or (ii) the provisional fair rent of an old house has been acquiesced in by the landlord and the tenant in accordance with article 5(1)(i) and the period agreed upon in the tenancy agreement is still current; or (iii) proviso (i) of article 7(1) is applicable.

Art. 7

Excessive rents.

Amended by:

I. 1957.6.

R E N T R E S T RIC TIO N (D WELLIN G H O U SES) be irrecoverable from the tenant, and, if it is paid by the tenant, shall be recoverable by him or by any person claiming through him from the person to whom it was paid or his heirs, and may, without prejudice to any other method of recovery, be deducted from any rent or money due or subsequently becoming due by the tenant to the landlord:

Provided that:

Tenancy agreements with effect from 31st March, 1939, or from prior date. (i) in the case of a dwelling house let at the commencement of this Ordinance under a tenancy agreement made on or before the 31st March, 1939, or made bona fide after that date but with effect retrospective to that date or to a prior date, this sub-article shall not operate to render irrecoverable from the tenant or recoverable by the tenant or any person claiming through him, or deductible, any rent payable under the tenancy agreement during the period of tenancy established by that agreement;

Tenancy agreements with effect from 1st April, 1939, or from later date, made before enactment of this Ordinance. (ii) in the case of a dwelling house let at the commencement of this Ordinance under a tenancy agreement made on or after the 1st April, 1939, but not so that it should bona fide have effect retrospective to a prior date, this subarticle shall not operate to render irrecoverable from the tenant or recoverable by the tenant or any person claiming through him, or deductible, any rent payable or paid under the tenancy agreement up to the date of filing of the requisite application in the registry of the Board, but this limitation shall not in any case apply to rent payable or paid in advance in respect of any period in excess of three months. The further payment of rent shall be governed by the following sub-article (2).

Restriction on demand of premiums.

Art. 8

Art. 9

The appraiser’s fee and outgoings shall be borne provisionally by the tenant, over and above any fee that he may be required to pay under article 10.

Provided that in no case shall such fair rent of the furniture exceed (i) in the case of an old house in which no structural alterations or additions not chargeable to the war damage account have been effected after 31st March, 1939, the fair rent of the house as unfurnished, assessed in accordance with the provisions of this Ordinance; (ii) in the case of an old house in which structural alterations or additions not chargeable to the war damage account have been effected after 31st March, 1939, the fair rent of the house as unfurnished increased by seven per centum of the increase of rent, if any, which the Board under the provisions of this Ordinance may assess or have assessed in view of those structural Dwelling houses let furnished.

Amended by:

XXIX.1947.5;

V.1947.3.

R E N T R E S T RIC TIO N (D WELLIN G H O U SES) alterations or additions; (iii) in the case of a new house the fair rent of the house as unfurnished assessed in accordance with the provisions of this Ordinance increased by seven per centum:

Provided further that in assessing the rent of a furnished house the Board, at the request of the tenant and after hearing the landlord, may at its discretion order that for purposes of computation of the rent of the furniture no consideration shall be taken of any one or more articles of furniture specified by it which are neither reasonably necessary to the furnishing of the house nor in keeping, with regard to quality and to commercial value, with the greater part of the other articles of furniture in the same house; and on such an order being made by the Board, the landlord shall have the option to remove from the house in question at his own expense and at any reasonable hour of which he shall give not less than twenty-four hours’ notice in writing to the tenant the article or articles not taken into consideration in connection with the computation of the rent.

Fees on filing.

Amended by:

XXIX. 1947.6;

XIII. 1983.4,5;

L.N. 409 of 2007.

Brokerage.

Added by:

XXIX. 1947.7.

Art. 10

Art. 11

Art. 12

Limitation of claims by tenant.

Art. 13

Registration of deed or grant.

Added by:

I.1957.7.

Amended by:

XIV. 1958.2;

XXV. 1962.5.

Art. 14

General penalty.

Amended by:

L.N. 46 of 1965;

XIII. 1983.5;

L.N. 409 of 2007.

Provided that the courts shall not apply the penalty of imprisonment, otherwise than on failure to pay a fine, until after the d a t e o f a r e s o l u t i o n t o t h a t e ff e c t p a s s e d b y t h e H o u s e o f Representatives in respect of offences committed thereafter.

Art. 15

Provided that the prosecutor shall have a right of appeal to the Court of Criminal Appeal in each of the cases set out in article 413 of the Criminal Code and also whenever in his opinion the sentence containing a conviction is not adequate.

Jurisdiction and limitation of prosecution.

Amended by.

XXII. 1976.4;

XI. 1977.2;

VIII. 1990.3.

Effect of Ordinance.

Amended by:

XXIV.2021.41.

R E N T R E S T RIC TIO N (D WELLIN G H O U SES)

Art. 16

Act No. XXIV of Provided that no provision of this Ordinance shall be interpreted in such a way as to prevent the application of the Controlled Residential Leases Reform Act, 2021.

Operativeness of this Ordinance.

Added by:

XXXI.1995.3. *17. (1) The foregoing provisions of this Ordinance shall not apply to the lease of any dwelling house entered into on or after the 1st June, 1995.