Housing Minister Dr Abdullah Muhthalib has said that flats allocated under the government’s housing schemes will be confiscated if rented out to third parties.

Muhthalib made the statement following posts on social media alleging that some recipients of the flats under the landlord scheme were renting them at high rates. The government began handing over flats under the homeowner scheme last week.

According to the Fahi Dhiriulhun Corporation (FDC), the rent set for the flats is:

However, some posts on social media have advertised these flats for rent at around MVR 25,000 per month.

In a post on ‘X’, Muhthalib said that any such rented flats would be confiscated. He said the government’s social housing schemes are intended to provide affordable housing for residents and not for commercial purposes.

“The government does not accept the rental of these properties at high prices or their use by persons other than the grantee. Therefore, contrary to the agreements, the government has decided to cancel the lease agreements and take necessary steps to repossess such properties,” Muhthalib said.

He added that the Ministry is coordinating with relevant authorities to begin inspections of flats allocated under social housing schemes.

The agreements signed between the government and flat recipients prohibit renting the properties to third parties. The FDC has the authority to investigate and take action on any complaints regarding such cases.

In previous housing projects, several government-allocated flats were also found to be rented out by recipients, particularly in Hulhumalé Phase 1 and Phase 2. Although earlier administrations initiated action to address the issue, enforcement had later declined.