Parliament-approved housing plan will sell properties at below-market cost

Parliament officially approved of a major housing initiative that will see public land transferred to the Foundation for Affordable Housing (FAH), to build homes for people who cannot afford market prices but do not qualify for social housing.

“The rise in property prices has created what we call the ‘stretched class’, which are hardworking people earning a decent wage who still can’t secure a home,” said Jake Azzopardi, the chief executive of the foundation. “Average income earners cannot secure home loans strong enough to cover market prices, and people are left stuck, either living with their parents or paying rent that takes up a substantial amount of their income.”

MaltaToday is informed that hundreds of units will be built across these four localities.

The Foundation for Affordable Housing was set up in 2022 by the government and the Archdiocese of Malta to help lower-middle income earners. This group often earns just above the limit for social housing but still struggles to buy a home on the private market.

The new housing projects will be built in four locations across Malta: Ta’ Ġiorni in St Julian’s, Ħal Kirkop, Fgura, and Marsascala. The homes are planned to be sold below the usual market prices, offering a new way forward for those stuck between renting and owning.

The chairperson of the foundation, Ambassador Roberto Buontempo, said the move is more than just a government measure. “This milestone reflects not just a structural commitment, but a moral one,” he said.

He referred to this initiative as a tangible expression of its social mission. “The church, together with the state, is helping to create a new model of shared responsibility and solidarity in housing.”

The NAO accounts committee in parliament approved the transfer of land from the Housing Authority to the foundation. Social Housing Minister Roderick Galdes welcomed the decision and said the projects will have a real impact.

“I look forward to seeing the foundation embark on these projects, which will make a real difference in the lives of many Maltese and Gozitan families in need of support to become homeowners through access to affordable accommodation at prices below those of the current private residential market,” the minister said.

The foundation says the project is not a form of charity or subsidy, but a long-term and practical plan. It aims to work with the private sector, NGOs, and banks to offer sustainable housing options.