Several updates were announced to three schemes targeting first-time buyers, individuals who have undergone separation, and those requiring social housing support.
Parliamentary Secretary for Social Dialogue and Accommodation, Dr Andy Ellul, announced a package of three comprehensive and balanced measures aimed at helping over 900 new families, including young people seeking to buy their first property and individuals who have undergone separation.
During a press conference, Dr Andy Ellul explained that this announcement has three goals: to increase the supply of social housing properties, to support those who are struggling to buy property or even rent due to separation later in life, and to assist young people seeking to purchase property.
Dr Ellul explained that the Government is thus extending and strengthening three schemes: the Nikru biex Nassistu Scheme, the Housing Benefit Scheme and the Equity Sharing Scheme.
“What we are announcing today responds to the evolving needs of our society. It is a package of measures which helps increase access to homeownership in our country. This is the way to improve housing policy, in a targeted, responsible, people-centred and focused way," said Dr Ellul.
Nikru biex Nassistu (NIK)
This scheme is a synergy between the Government and the private sector. Private owners enter into a 10-year contract to let their property to persons on the Housing Authority’s Waiting List for social housing.
“Today, 1,400 families have a roof over their heads thanks to this scheme. With the changes we are announcing, we will be investing an additional €5 million," said Dr Ellul.
The investment will take the form of more advantageous rates. The new rates amount to slightly less than the average rental price in Malta and Gozo, taking into account the benefits offered by this scheme, including long-term stability for the owner and the tenant, advance payments, and tax savings.
Dr Ellul added that this investment will mean that an additional 500 families will have a roof over their heads.
Housing Benefit Scheme (HBS)
Parliamentary Secretary Andy Ellul also announced changes to the private rental subsidy scheme, known as the Housing Benefit Scheme. This scheme supports tenants renting in the private sector by providing monthly subsidies towards their rent payments. This helps ensure that the lease is affordable.
"Thanks to the changes we are announcing today, a new category will be created for tenants aged 55 or over who are separated," explained Dr Ellul.
He said that while, until now, these persons fall under the single category and receive up to a maximum of €4,200 per year in subsidies, they will, with this change, see an increase of €1,800 in the maximum subsidy they can receive. They will therefore receive up to a maximum of €6,000 per year.
Until now, the income of persons in this category could not exceed €21,900 per year in order to benefit from the rent subsidy. With these changes, those who earn up to €34,900 can benefit.
Around 400 people currently benefiting from HBS will benefit from this improvement. All those who apply from now on and fall into this category will benefit from this updated scheme.
"This measure is therefore a targeted change driven by realities we encounter on a daily basis, and through this same change, we will now be helping a new category of people to also have a roof over their heads," said Dr Ellul.
Equity Sharing Scheme (ESS)
Regarding the third change, Dr Andy Ellul said that the Government's work remains aimed at increasing access to property. He recalled that the Equity Sharing scheme provides access to those who cannot finance a property on their own and who need some help.
Under this scheme, the Housing Authority enters into a partnership with the buyer. Applicants must purchase at least 50% of the property using personal funds. The Housing Authority covers the remaining share.
To date, only those aged 30 and over have been able to benefit. "Thanks to these changes, the scheme will be extended to those aged 25 or over," explained the Parliamentary Secretary.
“But that is not all. We will make another change to meet the challenges of people undergoing separation,” said Dr Ellul. Persons aged 40 or over who are undergoing separation and wish to purchase their matrimonial home under the Equity Sharing scheme can do so, with the maximum value of the property set at €350,000.
Dr Ellul said that "These measures show that the Government understands that housing challenges do not affect everyone in the same way, but affect different people at different stages of their lives. These measures help young people who want to buy their first place. They also help those who, later in life, are undergoing separation, with all the uncertainty this brings. These measures also help families who are renting. Therefore, these challenges cannot be addressed with a single solution."
Dr Ellul concluded by saying that housing is not just a building but security, stability, equal opportunity for all, and above all, dignity for Maltese and Gozitan families.
The conference was also addressed by the CEO of the Housing Authority, Matthew Zerafa, who said that the Authority is continuing to move towards a system that puts people at the centre of its work and strategy. "With our reforms, we are not only improving and strengthening schemes swiftly but also ensuring that their benefits reach people faster than ever before," concluded Mr Zerafa.