Counselor Mahmoud Fawzy, Minister of Parliamentary Affairs and Political Communication, stated that he participated today in a session at the House of Representatives dedicated to discussing the draft law on old rental agreements, in the presence of a group of civil law experts, in response to the parliament’s call to address this important issue.
In a phone interview with Extra News channel, Fawzy explained that the Supreme Constitutional Court issued a ruling in November 2024 declaring Articles (1 and 2) of the Rent Law unconstitutional. These articles had previously fixed the rental value indefinitely. The court considered that maintaining the same rental value over time contradicted the significant economic changes the country had undergone, resulting in a clear imbalance in the landlord-tenant relationship, as the rental values became negligible compared to the new economic reality.
He also pointed out that the court called on the legislature to restore balance in rental relationships by increasing rental values and granted Parliament a deadline to organize alternatives, starting the day after the current parliamentary session ends.
Fawzy clarified that the government and Parliament are responsible for implementing this ruling concerning rental laws. The laws have been reviewed and a draft law has been referred to the House of Representatives. He emphasized the importance of initiating a societal dialogue on the draft law, highlighting that hearing sessions have been held with various stakeholders, including ministers, representatives from the Central Agency for Public Mobilization and Statistics, civil law experts, as well as landlords and tenants.