Compulsory mediation on pre-1995 rents introduced

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Disputes concerning leases signed before 31 May 1995 will now face a compulsory mediation process before the matter can go to the Courts, following a series of legal notices published by the government.

The mediation process will be fully-funded by the government.

Leases signed before that date are subject to stringent regulations which aimed to safeguard tenants from rising rental costs, but over decades have led to many properties being leased for a pittance.

They are increasingly being challenged in Courts, however, and a Constitutional Court has ruled that they breached landlords’ fundamental rights.

The Justice Ministry is thus seeking to avoid or minimise litigation by mandating mediation in front of the Rent Regulation Board.