Mercieca vs Ellul — Rent Control Violates Property Rights

Whether Malta's rent control laws under Chapter 158 violated landlords' fundamental right to property under the European Convention on Human Rights.

Constitutional Court · Chief Justice Mark Chetcuti, Hon. Judge Anthony Ellul, Hon. Judge Robert G. Mangion · 4 May 2026

Four siblings — Eucharistica, Andrew, Salvina, and Josephine Mercieca — acquired a flat in Vittoriosa (Birgu) through a deed of donation from their mother in May 2021. The property had been occupied by Brian and Glenda Ellul since 1991, originally under a temporary emphyteusis (ċens) that later converted into a regulated tenancy. The tenants had been paying a controlled rent of Lm90 per year until 2012, rising to €400 per year thereafter — far below market rates. The Mercieca siblings filed a constitutional complaint arguing that the operation of Articles 12 and 12B of Chapter 158 of the Laws of Malta — Malta's rent regulation legislation — violated their fundamental right to the peaceful enjoyment of their property, as protected by Article 1 of the First Protocol of the European Convention on Human Rights. They argued they were trapped: unable to recover possession of their flat and unable to raise the rent to market levels, suffering a disproportionate burden as private citizens. The First Hall of the Civil Court, sitting in its constitutional jurisdiction, rejected all of the applicants' claims on 11 October 2024. The court found that since the property had been acquired by donation after the coming into force of Act XXVII of 2018 — which introduced Article 12B providing a remedy before the Rent Regulation Board — the applicants could not complain of any violation predating their acquisition of title. Any breach of fundamental rights gives a litigious right only to the victim, and such a right cannot be transferred inter vivos. Both sides appealed: the Mercieca siblings challenged the First Court's failure to find a violation, while the Attorney General cross-appealed on the finding that the tenancy was regulated by Chapter 158. The Constitutional Court examined the legal framework, noting established jurisprudence that Article 12B of Chapter 158 — introducing the mechanism to seek rent increases of up to 2% of market value before the Rent Board — constituted an effective ordinary remedy that landlords must exhaust before turning to constitutional courts. The court upheld the First Court's reasoning and dismissed both appeals.

The Constitutional Court upheld the applicants' appeal, set aside the lower court judgment, found a breach of fundamental rights, and awarded €12,180 in pecuniary damages plus legal interest. The claim for non-pecuniary damages was dismissed.

• Under Maltese constitutional law, a violation of fundamental rights gives a litigious right only to the direct victim; that right cannot be transferred to a third party through an inter vivos act such as a donation — meaning new owners cannot claim remedies for violations suffered before they acquired title.
• Before invoking constitutional jurisdiction for property rights complaints under rent control, landlords must first exhaust ordinary remedies — specifically the Rent Regulation Board procedure under Article 12B of Chapter 158 — introduced by Act XXVII of 2018.
• Article 12B of Chapter 158 allows landlords to apply to the Rent Board for rent increases of up to 2% of the open market value of the property, and is treated by Maltese courts as an effective ordinary remedy that displaces the need for immediate constitutional relief.
• The European Convention on Human Rights (Article 1, First Protocol), incorporated in Malta via Chapter 319, protects property rights but permits the State to regulate property use in the general interest — including through rent control legislation — provided a fair balance is struck.
• Private tenants such as the Elluls cannot be held personally responsible for alleged violations of fundamental property rights caused by State legislation; any constitutional remedy lies against the State, not against individual occupants who have complied with the law.

Chapter 158 (Rent Regulation Ordinance), Articles 12 and 12B, as amended by Act XXVII of 2018 and Act XXIV of 2021; Article 1 of the First Protocol to the European Convention on Human Rights (First Schedule, Chapter 319, Laws of Malta)