WATCH | Too rich for social housing, too poor for an apartment? This new scheme is for you

A new housing scheme is hoping to target the new middle class that is being priced out of the property market. Nicole Meilak sits down with Jake Azzopardi from the Foundation for Affordable Housing to understand what will happen

A newly set-up foundation between the government and the Catholic Church is hoping to sell apartments at below-market cost to create a new supply of affordable housing.

Jake Azzopardi from the Foundation for Affordable Housing explained to MaltaToday this new concept that will provide apartments at a 30% discount compared to market prices for the same type of apartments in the same geographical areas.

“These homes will be available for workers—individuals and couples—who earn a wage but, despite their income, still find that current market prices are out of reach,” he said.

Azzopardi described these people as the new middle class who are comfortable enough to be disqualified from social housing but not comfortable enough to afford market prices either.

“As a foundation, we were established with a clear mission—to make the housing sector more affordable for everyone,” he said. “We are of the view that anyone working in Malta should be able to afford a home.”

While this is a single project, Azzopardi said this is the start of a sustainable process that will ensure that everyone working in Malta has access to affordable, quality housing.

At this stage, the foundation has published a call for contractors to submit their designs and pair them with viable and sustainable prices. “We will reward aesthetics, sustainability and price. We expect to offer sustainable spaces suitable for new families to live in.”

Azzopardi said this was the next step in local housing policy. “In Malta, we’re used to homes being built by either the private sector for maximum profit or by the government for the most vulnerable people in society. This is a third sector. We’re a social business using commercial methods to achieve social goals, namely to allow people access to affordable homes.”

What makes the foundation’s model different from a usual developer is that it will forego significant profit to maximise the benefit of the individual or family buying the affordable home.

“In Malta, people want to become homeowners. So, we are giving them a clear, affordable pathway, a model where we’re not chasing higher prices but rather lowering them and eliminating speculation. Once we met all the affordability conditions, we felt confident that this model would deliver the desired value.”

Azzopardi said this model is based on several principles—it creates affordable housing, without heating up the market, allowing a clear path to homeownership.

Part of the innovation in this model is the pathway to homeownership. The buyer of one of these apartments is purchasing a long-term lease (ċens) at an affordable price. After living in the apartment for 20 years, they gain the right to redeem the lease.

“In contrast to the private market, which expects full payment immediately, our model provides a more gradual and affordable route,” he said. “It offers space and access to new entrants who are currently outside the market, helping them become full consumers in the housing market.”

Azzopardi believes that everyone will benefit from this model. “People will acquire modern, affordable quality homes. The industry will get a fair profit, but without speculation. The government will recover the value of the land based on independent valuations. The foundation will recover its administrative costs and reinvest in more affordable housing.”

Land in Fgura, Kirkop, Marsaskala and Ta’ Ġiorni has already been transferred to the foundation for the construction of new homes. Now, it is accepting bids to build 260 residential units across the four areas.