[WATCH] Labour cash grant for first-time home buyers will not be means-tested

An annual cash grant of €1,000 that the Labour Party is proposing for first time home buyers will not be means tested, Robert Abela said on Wednesday.

The Labour leader said the measure will apply retroactively to 1 January 2022 and the grant will be paid for the first 10 years to cushion the impact of loan repayments.

The measure will complement other housing schemes that already exist, including the

cash grant for those who buy a property in urban conservation areas.

Abela refuted a suggestion that the grant will lead to higher property prices and said the amount was in line with what the country could afford.

Abela added that the capping on an existing scheme in which the government subsidises the down payment on a property will increase to €250,000 from €175,000. 

“We believe that everyone has a right to have a house and we support people to become homeowners… we are with young people because we represent the future,” Abela said during a press conference at the Rialto in Bormla.

The Prime Minister was flanked by two new candidates – Naomi Cachia and Cressida Galea.

Asked how people who cannot afford to get on the property ladder will be helped, Abela said the government had introduced various schemes through the housing authority, including a reform of the protected pre-1995 rents.

Asked about the commitment to stop the yacht marina project in Marsaskala, Abela said the project was stopped “permanently”. He insisted the decision was not a sign of mistrust in Ian Borg, who was responsible for the project.