Proposed housing bill could damage rental market

The proposed Protection of Occupants Bill 2025 could cause severe harm to the domestic housing rental market and the broader economy if passed in its current form.

Former Justice Minister and President’s Counsel Ali Sabry stated in a recent release that while preventing the unfair eviction of tenants is a positive goal, the new legislation places homeowners at a severe disadvantage.

He noted that even if a tenant defaults on monthly rent, water, electricity bills, or condominium maintenance fees, the law would force the homeowner to continue providing essential services until legal proceedings conclude.

He characterised this as a form of "forced maintenance" of the tenant by the owner.

The former minister warned that such regulations would make property owners fearful of renting, leading to a decrease in housing supply and a subsequent hike in rental prices.

He argued that this shift would reverse the progress made under the 2023 Possession of Premises (Recovery) Act No. 1. Instead of introducing an entirely new bill, he suggested amending the 2023 Act to ensure legal protection is only afforded to tenants who fulfill their financial obligations.

He emphasised that the law should operate on the principle of "no payment, no protection" to avoid returning to outdated and restrictive rental regulations.