Gov’t Unable To Ban Renting of Social Housing Flats, Minister Says Law Change Needed

Housing Minister Abdullah Muthalib has said the government is currently unable to prohibit the renting of social housing flats under existing agreements, unless the law is amended, a process that is now under way.

The minister made the remarks at a press conference held at the President’s Office on Sunday, in response to questions from journalists. He explained that the current agreements governing government housing schemes do not explicitly prohibit subletting, particularly in the case of Hiyaa flats.

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He noted that the agreements allow direct leasing and do not contain provisions that make such arrangements illegal, limiting the government’s ability to take action against tenants who rent out their units.

Muthalib said the administration plans to submit a Housing Bill to Parliament, and once the legislation is passed, renting out social housing flats will be prohibited. He added that amending the law is a key policy priority aimed at preventing misuse of government housing in the future.

Addressing concerns over the misuse of social housing units, the minister said some restaurants and businesses have converted flats into living quarters for foreign workers. While efforts are being made to vacate such properties, he said enforcement remains challenging due to the limitations of the current agreements.

Hiyaa flats have previously been rented out at high prices, attracting widespread public criticism. Similar concerns were raised over the 4,000-flat housing project implemented under the former MDP administration, where some recipients advertised units for rent at high rates despite not having received possession of the flats.

The Fahi Dhiriulhun Corporation has also faced criticism after advertising a three-bedroom unit for MVR 10,500, which was later listed at MVR 25,000.

Public concern has grown over the risk that the most deserving applicants may be deprived of housing due to such practices. It has also been reported that many units are rented out without adequate checks to confirm whether the allocated owners are actually residing in the flats.

Both the Housing Development Corporation and the Fahi Dhiriulhun Corporation have stated that they are working to identify tenants living in social housing units and will take action where violations are found.