Court finds Chapter 69 rent-control laws imposed a disproportionate burden on private landlords from 1987 to May 2021, awarding €93,449.32 in compensation.
Civil Court First Hall (Constitutional Jurisdiction) · The Honourable Judge Dr Audrey Demicoli LL.D. · 30 April 2026
Peter Sammut, Gillian Bartolo, Mary Camilleri (later substituted by her heirs) and the Magri family are co-owners of a property at 150 Triq Zekka, Valletta. The property has been rented to Myriam Vella and her family since 1946, with the tenancy protected under Chapter 69 of the Laws of Malta (the Rent Restriction Ordinance). The owners filed a constitutional application in March 2024, arguing that the controlled rent — which stood at just €296.08 per year as recently as 2023 — represented a gross violation of their fundamental right to peaceful enjoyment of property under Article 1 of the First Protocol of the European Convention on Human Rights. The court appointed a technical expert, Dr Konrad Xuereb, who estimated the open-market rental value of the property between 1987 and 2018. His report showed a stark contrast: by 2018 alone the annual market rent would have been €14,241, compared to the €296.08 per year actually received. The expert's findings were accepted in full, as neither party challenged them through cross-examination or by appointing counter-experts. The court dismissed claims based on Article 37 of the Constitution of Malta, finding that Chapter 69 was enacted in 1931 — well before the constitutional savings clause cut-off date of 3 March 1962 — and is therefore shielded from Article 37 scrutiny under Article 47(9) of the Constitution. Claims referencing Chapter 158 were also set aside after the applicants clarified that only Chapter 69 was relevant to their tenancy. On the ECHR claim, the court found that while the rent-control regime served a legitimate social purpose and was lawfully enacted, it failed to maintain a fair and proportionate balance between the general interest and the owners' fundamental rights for the period from 1987 up to May 2021. The 2009 amendments (Act X of 2009) were found insufficient, while the 2021 amendments (Act XXIV of 2021) were deemed adequate going forward but had no retroactive effect. The court awarded pecuniary compensation of €88,949.32 (calculated using the Cauchi v. Malta formula: market rent minus 30% for legitimate aim, minus 20% for possible vacancy, minus rent already received) and non-pecuniary compensation of €4,500 to the two original owner-applicants Peter Sammut and Gillian Bartolo. The Advocate of the State was ordered to pay the full compensation, as the tenant Myriam Vella bore no personal responsibility for the legislative framework.
Pecuniary compensation of €88,949.32 awarded, divided: ¼ to Peter Sammut, ¼ to Gillian Bartolo, ¼ equally between Dr Michael Camilleri and Anna Camilleri (heirs of Mary Camilleri), and ¼ split as ½ to Stephen Magri and ¼ each to Andrew and Mark Magri (heirs of Jacqueline Magri). Non-pecuniary compensation of €4,500 awarded (€2,250 each) to Peter Sammut and Gillian Bartolo only. No non-pecuniary compensation to heirs. Legal interest runs from the date of judgment passing into res judicata. Costs split: 1/5 payable by applicants, 4/5 by the Advocate of the State. Dr Richard Camilleri received no compensation (holds only usufruct rights acquired after his wife's death in 2024). Tenant Myriam Vella bears no financial liability.
Chapter 69, Laws of Malta (Rent Restriction Ordinance) — controlled tenancy, renewal rights; Article 1 of the First Protocol, European Convention on Human Rights (Chapter 319, Laws of Malta) — peaceful enjoyment of property; Article 37 and Article 47(9) of the Constitution of Malta — compulsory acquisition, savings clause; Act X of 2009 and Act XXIV of 2021 (amendments to Chapter 69 and Civil Code Chapter 16)