[WATCH] ‘Game-changing’ housing scheme will cater for people who do not qualify for social housing

Parliamentary secretary for Social accommodation Roderick Galdes has announced a €10 million housing scheme for persons who cannot afford to buy a home but do not qualify for social housing.

Under the new scheme, the Housing Authority would provide a stock of apartments with affordable rents. The 118 apartments, which are to be built in the tal-Patri area of Fgura would be available at a five-year fixed rent of €300 monthly for one-bedroom, €400 for two-bedroom and €500 for three-bedroom units.

Galdes explained that the concept was intended to help people who would otherwise not afford to transition into the housing market.

Local banks would help finance the scheme and be paid from the rent collected, he said, but insisted that the aim was not profit.

The qualifying criteria would be the income and the composition of the family, Galdes explained, saying that the scheme was aimed to help families who do not qualify for the social housing waiting list but still cannot afford to rent or own a property.

The 118 apartments will be built in the tal-Patri area of Fgura

“This will totally change the model of how we look at housing in this country,” he added. The scheme will not affect the current stock of 1,700 buildings currently used for social housing.

Housing Authority CEO Leonid Mackay said that the Authority ‘absolutely disagreed’ with the notion that the State should only provide social accommodation.

“We believe that the state should have a more direct and active interest in providing adequate social housing and to see that there is a market of affordable rents for persons with low income, as well as to regularise the rental market,” he said.

The measure is one of a raft of measures introduced by the Authority, intended to help those who cannot afford housing.

Housing will be available at a five-year fixed rent of €300 monthly for one-bedroom, €400 for two-bedroom and €500 for three-bedroom units

“Last year we spoke about rent benefits, and how a family cannot spend over a quarter of its income on housing, but we see that not only cash benefits are needed but also a stock of affordable housing. We can build without looking only at profit,” Mackay said.

The idea is that the housing will be a transitory measure for not more than five years until the tenants find their feet and can afford to rent or purchase property on the general market.

He thanked Galdes and the Authority’s board for “literally building the housing strategy over the past two years.”

Taking a question from reporters, Galdes said that the Authority was currently waiting for planning permission and would then begin the construction of the units.  “There is the commitment and discussions with banks are underway,” he said.