A record budget of more than €81 million on social and affordable housing.
In the last five years, a family has become a homeowner every two days.
The Minister for Social and Affordable Housing Roderick Galdes listed the main measures of the Budget which for next year envisages a record investment of more than €81 million and thus continues to be given a top priority by the Government so that everyone has access to a decent and affordable home. He mentioned among others the first-time buyers scheme which envisages giving €1,000 every year for 10 years to those who buy their first home.
So far more than 7,000 people have benefited from the scheme since it came into force. For next year, more than €8 million has been voted for it. Minister Galdes also referred to the equity sharing scheme that was introduced in 2019 and that has benefited more than 380 families so far. For next year, more than €5 million has been allocated to the scheme. Now, even those between the ages of 25 and 30 will be eligible for it.
The scheme is intended for those who do not have enough capital to buy their own home, with the Housing Authority issuing half of the capital that must be redeemed within 20 years in the same amount that was borrowed. Other benefit schemes that will continue to be supported next year are those of the rent subsidy and the housing benefit, from which around 3,000 families benefited.
Around 1,900 other families benefited from a rent subsidy related to pre-1995 leases. The total investment on these schemes has increased from almost €6 million to €18 million in 2024. For next year the government has allocated €21 million on both schemes. Minister Galdes confirmed that talks are underway for the rent subsidy scheme to be extended to private residences rented before June 1995 for those living in purely residential farmhouses.
Regarding the 10% deposit payment scheme on home loans, Minister Galdes said that with this Budget this has been increased from €225,000 to a quarter of a million euros, thus helping more people who do not have enough money to make a deposit. The loan is then redeemed within 25 years but all interest is paid by the Housing Authority.
Minister Galdes also referred to other social schemes such as the social loan through which the Housing Authority helps those who due to their income cannot buy a residence or obtain a loan. The same is done with the Sir Sid Darek scheme aimed at tenants becoming homeowners. He also mentioned other schemes such as New Hope, aimed at those who do not qualify for insurance on a home loan from the bank due to a medical condition.
The Budget also increased assistance for the elevator installation scheme where in the last 5 years a lift has been installed every two weeks in social housing buildings. For next year there is €2 million for this scheme.
The Nikru biex Nassistu scheme has been renewed and more resources have been given for next year. With this scheme, around 1,300 families are living in private properties that are rented to the Housing Authority as social housing. Last year, around €10 million was spent on the scheme.
Minister Galdes said that another Budget measure envisages that those who inherit property that will be their residence will pay a reduced rate of 3.5% on the first €400,000 and no more than €200,000. Minister Roderick Galdes concluded by saying that all the schemes have contributed to further shaping the Government’s vision to have an accommodation system that supports every phase of life, strengthens families and reflects the values of social justice and solidarity.
Photo: MSAA
