RENT RESTRICTION (DWELLING HOUSES) ORDINANCE (dwellinghouses)

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.

The short title of this Ordinance is the Rent Restriction

(Dwelling Houses) Ordinance.

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* See article 1 of the Ordinance, as originally enacted, part of which has been omitted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.

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 sub-

tenancy.

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.

(1) The fair rent of an old house may be established

provisionally or definitely.

(2)

The fair rent of an old house is established definitely -

(a) by the Board under article 5(1) or under article 6;

(b) by the effluxion of time as provided in article 5(1).

(3) The fair rent of an old house is established provisionally in

the appropriate cases -

(a) by the Land Valuation Officer; or

(b) by the Accountant General or by one of the officers

specified in sub-article (5).

(4) On application accompanied by a fee of twelve cents (0.12),

the Land Valuation Officer shall issue, in respect of any one

particular old house, a certificate stating what is the rent of that

particular old house, finally accepted as such in the books of the

Land Valuation Office, and the rent so stated shall be deemed the

provisional fair rent of that house.

(5) In the case of old dwelling houses the whole legal interest

in which, other than any letting, is vested in the Government of

Malta, the fair rent shall be established provisionally at the rent of

the particular dwelling house on the 31st March, 1939, or at the

rent of that particular dwelling house at any time within one month

of that day, in each case as declared in writing by the Accountant

General. If that particular old dwelling house was not let on the

31st March, 1939, or within one month of that day then the fair rent

shall be established only definitely by the Board.

(6)

The fair rent of a new house may be established only

*Repealed by Act XXIX of 1980 (Chapter 289).

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).

(7) The fair rent of a scheme house may be established only

definitely and only by agreement as provided in article 5(4).

(1)

When a landlord intends to let or to renew the letting

of -

(a) a dwelling house at a rent higher than or on conditions

different to the rent and conditions at which that

dwelling house was let on the 31st March, 1939; or

(b) an old house which was not let on the 31st March,

1939 -

(i) the landlord and the tenant may come to an

agreement concerning the rent and the

conditions but they may not agree that the rent

shall exceed the provisionally established fair

rent nor that the letting shall be on more onerous

conditions than those at which that dwelling

house was let on the 31st March, 1939, or, in

default of any such conditions, on conditions

more onerous than the ordinary conditions.

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.

(2)

When the landlord intends to let a new house -

(i)

the landlord and the tenant may come to a

provisional agreement concerning the rent and

the conditions, but so that that agreement shall

be made definite only by a decision of the Board

on the application of either the landlord or the

tenant, which decision shall in every case have

retrospective effect to the initial date of the

agreement. It shall be an offence for the landlord

not to make such application within two months

from the initial day of the agreement, unless the

tenant will have previously made the

application. Alternatively,

(ii) the landlord, before the commencement of the

tenancy, may apply to the Board to fix the fair

rent definitely.

(3) In every case the applicant to the Board shall disclose the

terms and conditions of the proposed letting and all the

circumstances which to his knowledge affect the fair rent of the

dwelling house.

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

(4) Before a grant is made towards the construction of a

scheme house or simultaneously with the making thereof an

agreement shall be entered into by means of a notarial deed

between the Minister for the time being in charge of the War

Damage Commission or some other person from time to time

delegated by him in that behalf and the grantee, determining the

fair rent of the proposed scheme house.

(5) In respect of a house whether old or new, repaired or rebuilt

under or in view of a value payment as defined in the War Damage

Ordinance, 1943 * , or repaired under a temporary works payment or

under a cost of works payment, each as defined in the War Damage

Ordinance, 1943*, of which the landlord does not want to retain

possession for occupation by himself, the last former tenant as

defined in the Reletting of Urban Property (Regulation) Ordinance

who held the last preceding letting of the house, shall be preferred

in the new letting to any other tenant who is not any ascendant or

descendant related to the landlord by consanguinity or affinity or

adoption or a brother or a sister of the landlord

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.

(6) If any person infringes or fails to comply with the

provisions of sub-article (1) or (3), or if a landlord commits the

offence specified in sub-article (2)(i), the offender shall be guilty of

an offence against this Ordinance, punishable as laid down in

article 14, except that the minimum fine awardable shall be of

ninety-three euro and seventeen cents (93.17).

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 -

(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.

(1) Where at any time after the commencement of this

Ordinance the rent of any dwelling house exceeds the fair rent as

determined by the Board or acquiesced in terms of article 5(1)(i), or

agreed as provided in sub-article (4) of that article, the amount of

such excess shall, notwithstanding any agreement to the contrary

whether made before or after the commencement of this Ordinance,

*Repealed by Act Act XXIX of 1980. (Chapter 289).

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

(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;

(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 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 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).

(2) When proviso (ii) of article 7(1) applies, the rent which

next falls due after an application has been filed in the registry of

the Board shall be the fair rent provisionally established under

article 4; but if the Board makes any adjustment thereof, such

adjustment shall be retrospective to the day as from which that

provisional fair rent became payable.

(3) If any landlord knowingly receives any rent which is by this

Ordinance made irrecoverable by the landlord, he shall be guilty of

an offence against this Ordinance, and if a landlord is convicted of

any such offence the court in which the conviction is obtained may,

without prejudice to any other right which the tenant may have to

recover the rent overpaid, order the landlord to repay the same with

interest from the day of the order.

(1) A person shall not, as a condition of the grant, renewal,

or continuance of a tenancy of any dwelling house, require or

accept the payment of any premium or other like sum or the giving

of any consideration in addition to the rent, and where any such

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

p a y m e n t o r c o n s i d e r a t i o n s h a l l b e m a d e o r gi v e n a f t e r t h e

commencement of this Ordinance, the amount or value thereof shall

be recoverable by the person by whom it was made or given or by

his heirs.

(2) Any person after the commencement of this Ordinance

requiring any payment or the giving of any consideration in

contravention of this article, shall be guilty of an offence against

this Ordinance, and, if a person convicted of requiring or accepting

any payment or any consideration as aforesaid has received such

payment or consideration, the court in which the conviction is

obtained may order him to repay to the person from whom it was

received or to the heirs of that person, the amount or value of the

same with interest from the day on which it was received.

(1) The provisions contained in this Ordinance shall apply

to any dwelling house let furnished, without any regard being had

to the furniture, and the difference between the rent so established

and the rent agreed upon between landlord and tenant shall be

deemed to be the rent of the furniture.

(2) Any tenant of a furnished dwelling house at his option may

at any time apply to the Board to establish the fair rent of the

furniture, provided that any adjustment of rent that may be decided

upon by the Board shall not be effective except as from the first due

day of rent falling after the tenant’s application has been filed; and

provided that the option so granted may not be availed of more than

once by the same tenant in respect of the same tenancy, whether as

originally agreed upon or as renewed from time to time.

(3) On such an application being made, the Board shall, in

every case, appoint an appraiser to value the net proceeds that

would probably accrue from a free sale at auction of the furniture.

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.

(4) The Board shall fix the fair rent of the furniture at fifteen

per centum a year of the appraised value thereof

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

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.

(5) Bearing in mind the extent to which the rent fixed under the

provisions of this article approximates or otherwise to the rent

previously paid or agreed upon, the Board shall determine whether

the fee and outgoings of the appraiser shall be borne finally by the

tenant or by the landlord or in specified proportions by both.

(6) The provisions of articles 3, 8, 9, 10, 11, 13, 15 and 27

article 25(2) of the Reletting of Urban Property (Regulation)

Ordinance shall apply to dwelling houses let furnished.

The provisions contained in article 29 of the Reletting of

Urban Property (Regulation) Ordinance shall apply to an

application filed either by the landlord or by the tenant, but in

every case of a dwelling house let furnished the registry fee on

filing the application shall be of three euro and forty-nine cents

(3.49) where the rent of the dwelling house let furnished does not

exceed eleven euro and sixty-five cents (11.65) a month or of four

euro and sixty-six cents (4.66) where the rent of the dwelling house

let furnished exceeds eleven euro and sixty-five cents (11.65) a

month, and in either case there shall be paid in addition the

transport fees for the service of the application, in accordance with

the appropriate Tariffs annexed to the Code of Organization and

Civil Procedure.

(1) Brokerage in respect of the letting of a dwelling house,

whether furnished or unfurnished, shall not in any case exceed one

moiety of a month’s rent of the house as fixed by the Board.

(2) Any agreement whereby a person, under any title, directly

or indirectly, agrees to pay by way of brokerage any sum of money

or other consideration in excess of the sum assessed under the

provisions of the last preceding sub-article shall be null and void in

respect of such excess.

(3) Any person who, whether knowingly or by mistake, pays

any such excess shall be entitled to claim the refund of such excess

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

notwithstanding any agreement, any undertaking or any other law

to the contrary.

(4) An action under sub-article (3) shall be barred by the lapse

of five years from the date when the payment was made.

Any claim by a tenant against the landlord under the

provisions of this Ordinance shall be barred by the lapse of one

year from the date of termination of the tenancy, or from the date

on which this Ordinance ceases to be in force, whichever shall be

the earlier date.

The Minister for the time being in charge of the War

Damage Commission or some other person from time to time

delegated by him in that behalf shall, as soon as practicable after

the execution of any deed under article 5(4) or, as the case may be,

after any grant is made by the Government under any housing

scheme, cause an entry of such deed or grant containing such

particulars as the Minister may from time to time determine to be

registered at the Land Valuation Office and the Land Valuation

Officer shall register such entry accordingly.

(1) Any person who shall be guilty of an offence against

this Ordinance shall be liable to a fine (multa) of from forty-six

euro and fifty-nine cents (46.59) to four hundred and sixty-five

euro and eighty-seven cents (465.87), or to imprisonment for not

longer than three months, or to both such fine and such

imprisonment

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.

(2) Where the offence is committed by a company, association

of persons or any other corporate body, each person who, at the

time of the commission of the offence, was a director or officer of

such company, association or corporate body, shall be deemed to be

guilty of that offence unless he proves that the offence was

committed without his knowledge or that he exercised all due

diligence to prevent the commission of the offence.

(1) Any offence against this Ordinance shall be triable by

the Court of Magistrates in accordance with the provisions of the

Criminal Code

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.

(2) Whenever the chairman of the Board sees reason to believe

that an offence against this Ordinance has been committed by any

party to proceedings before the Board, he shall thereupon cause the

suspected offence to be reported to the Commissioner of Police.

(3) Proceedings in respect of an offence against this Ordinance

may be commenced at any time within two years from the day

when the offence was committed.

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The provisions of this Ordinance shall be in addition to

and, except where inconsistent therewith, not in derogation of the

provisions of the Reletting of Urban Property (Regulation)

Ordinance

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.

* 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.

(2)

For the purposes of this article -

(a) lease includes a sublease; and

(b) the renewal of a lease on or after the 1st June, 1995,

(whether such renewal be conventional, legal,

customary or otherwise) shall not be deemed to be a

lease entered into on or after the 1st June, 1995.

*Article 5 of Act XXXI of 1995 inter alia provides

5. Nothing in article 17 of the Rent Restriction (Dwelling Houses) Ordinance shall be

deemed to restrict any of the powers of the Director of Social Housing under the

Housing Act, (Cap. 125) and the provisions of the Ordinance as in force immediately

before the coming into force of this Act (1st June, 1995) shall, in as far as applicable,

continue to apply with regard to the relationship between the said Director and any

owner of premises in possession of the said Director on that date, or between the said

Director and any person legally in occupation of such premises. The provisions of the

said Ordinance as aforesaid shall also continue to regulate the relationship between

any person in occupation of such premises and the owner thereof.