RENTAL INCENTIVES

Plans to sell off almost 100 Government-owned properties in the Old Town last month (November) — as part of a drive to ease pressures on the Rock's property market — were put on hold by Chief Minister Peter Caruana ahead of the election; but other moves which form part of the initiative to make available more reasonably-priced homes are to forge ahead. "disturbing" and added that "it should not be allowed to continue indefinitely.'

Significantly, these include radi cal changes to Gibraltar's anti quated Rent Act and the similarly arcane Landlord and Tenant Ordi nance which between them have forced many landlords to leave older properties empty — some have become almost derelict — be cause repairs and maintenance are not economically viable.

The "45 year rule", which each year brings more and more prop erties into the rent control net, is also to be dropped and provisions which allow relatives and descend ants of tenants to "inherit" lowrental accommodation could also be scrapped.

There have been no statutory in creases in rents since 1983 and, as things stand, rentals on privately owned accommodation in build ings which have stood for 45 years or longer are pegged at levels onetenth of their real market value. Crippled by laws and regulations first drafted more than 50 years ago — when Gibraltar's economic and social climate was very differentlandlords have found the cost of repairs and maintenance so uneco nomic that many of the Rock's older buildings have sunk into a morass of neglect.

The plight of the old buildings many of them historic and architec tural gems — and the problems which landlords face were high- lighted more than two years ago in a Supreme Court case heard by Chief Justice Derek Schofield and again by the Court of Appeal. And though the latter allowed a Rent Tribunal appeal against Schofield's ruling, it described the situation as

Since then the Government has been in consultation with Gibral tar's Association of Landlords(es tablished in 2001 at the suggestion of the Court of Appeal)and Action for Housing the body which repre sents tenants' interests. This had been complicated, Caruana admit ted when I interviewed him re cently.

While both Action for Housing and the Property Owners'Associa tion agreed that the Landlord and Tenant Ordinance should be changed there was no concurrence as to how this should be. The Gov ernment had to listen to both argu ments and then "form a view,"he said.

"The Rent Act amendment is also important because when it is changed it will provide a further source of additional housing," he said. "What is happening is that landlords prefer to have their prop erties lying empty than to rent them out in terms of the existing Land lord and Tenant Ordinance. And there are hundreds of flats lying empty in Gibraltar for that reason. When we amend the Ordinance this will encourage and facilitate landlords renting out their proper ties."

It was "not just a case of doing the right thing by landlords so that they get a decent return on their property there is also important social benefits," Caruana added. For as well as aesthetic improve ments — landlords would be able to maintain and improve their properties "so adding to the over all effect and image of Gibraltar" it was important "not to diminish from the security of existing ten ants,.. that we don't expose exist ing tenancies to the vagaries of nor mal market price parameters.

"Why? Because Gibraltar is not a normal place. It is a small place with limited supply of property who live in private accommodation would find themselves squeezed out. So it has got be done in a way that is fair to the landlord, which is fair to the tenant and which protects the existing tenants from rent abuses while providing a reason able return for the landlord."

At the same time it was essential to provide a "safety net" for tenants who would not be able to afford a significant increase in rent. The Government had even considered extending the rent relief applicable to its own housing stock to the pri vate sector. But this, Caruana ad mitted was "a bit expensive."

landlords would be able to maintain and Improve their properties so adding to the overall effect and image of Gibraltar

and we are economically success ful to the point where we attract lots of expatriates to our industry with a disproportionate demand for property for rent.

"In that scenario if you were to expose local tenants to market prices, the banks,the gaming com panies and the contractors would push the market price up and the old folks — and not so old folks

"There is some investment to be done there because the rent relief system in the public sector in the Government housing is that you are forgiven some of the rent... but the Government doesn't actually shell out any cash. But the rent re lief system in the private sector for people in genuine need would in volve the Government paying part of their rent.

"So the focus of the new proposals which are currently being consulted on, is a dif ferent regime for ex isting properties cur rently occupied by tenants and a much more liberal regime for properties which are now lying empty."

Caruana was speaking before the election and, at the time, hoped that the proposed changes would be in place within six months. Whether that time-ta ble will be main tained in the welter of post-election busi ness remains to be "seen.

yTheconveyancing department ofCharles A.

Gomez&Co prides itself on a reputation for turning transactions around in a diligent yet quick manner.

"We always put our clients' interests first." says Lillian Kenny the executive in charge of property matters with the firm. "At the end of last year we accommodated a number of house buyers who ur gently needed to complete before Christmas so whilstothers were already celebrating, we were sign ing deeds; but that is the way we operate."

The firm has over 20 years experience and has reprc.scnied literally 1000s of homeowners. "We work closely with surveyors and estate agents to ensure that buying a home is a pleasant event and that there are no "surprises'later." says Lillian Kenny. "Gomez & Co are also on the panels of solicitors of many banks and building societies and we have an excel lent relationship with all to ensure the smooth run ning of transactions."

Appointments can be arranged on 24 hours notice, sometimes less. The firm is at 5 Secretary's Lane, phone 74998. Consultations are between 9am and 7pm.

PO Box 659,5. Secretary's Lane. Gibraltar

Tel:(+350)74998/73316

Fax:(+350)73074

E-mail: carlaw@gibnet.gi www.gomezco.gi