[WATCH] €1m scheme to incentivise private investment in social housing launched

€1m scheme to incentivise private investment in social housing launched

Parliamentary Secretary for Social Accomodation Roderick Galdes has launched a scheme to encourage owners of private residential properties to lease accommodation. The initiative is part of the administration’s efforts to address the waiting list of over 3,200 applicants requiring social housing.

Galdes said that the initiative addresses “the problem where many can’t afford rent because of today’s prices”.

One million euro will be allocated to the scheme, which will attempt to add at least 200 private properties to the 600 units allocated for social housing.

Owners of residential property in either a finished state or shell form are eligible to apply under the scheme. The Housing Authority will also consider properties on plan, but which have a development permit.

Under this scheme applicants will be exempt from tax due on rental income on the property rented. The Authority will also cap maintenance fees of common parts and will ensure an annual rate increase of a fixed rate of 2% per year.

Applications will be evaluated through an independent panel that will ensure that accommodations are the “best value for money and meet the needs of the Housing Authority’s client”. Quality of finishes, energy efficiency and layout will also be taken into consideration. In an effort to make social housing more accessible, apartments with lifts and properties close to children’s play areas will be given preference.