Housing Authority to sell 148 flats

Next Friday Social Policy Minister Lawrence Gonzi will announce the sale of 148 flats for sale in Malta and Gozo at subsidised prices by the Housing Authority.

Over the last four years we have been committed to delivering a building programme of 900 units, proving, if proof was needed, the Housing Authority's commitment to have a supply of units available to those who cannot reach market prices.

About half the units are reserved for families with children (whether these are headed by a lone parent or by two parents) and slightly less than half to engaged couples.

Once again we are also reserving a small number of these units for single people acknowledging, despite the limits to the numbers of units we can supply, that single people have particular affordability problems too.

For all these units and across all the categories of household the Housing Authority continues to give preference to those who either have some form of disability or experienced a form of chronic mental illness.

You normally have to be at least 30 years of age to qualify under the 'single' category.

However another innovation for this issue is to allow single people under 30 to apply if they have spent time in institutional care. Here we are referring to the many children who for one reason or another, have not been brought up by their own families.

They will also, from age 18, be able to buy into a Housing Authority property.

There are some other small but significant financial changes to this issue. We will only take 25 per cent of any overtime earned into account, acknowledging not only that overtime is not only guaranteed, but that we should not exclude, or even penalise, those who actually make the effort to work extra hours to make ends meet, or simply because they have the ambition to better their standard of living.

Allowable assets for single applicants are no longer allowed at half the rate of couples but has been raised, once again acknowledging that those who buy and are single are taking on a normally couple-cum-double burden on their own.

Flats are normally sold finished and maisonettes are normally sold shell by the Housing Authority. All in all there will be around 83 apartments with 80 garages attached in Birkirkara (the energy-saving block you can see on the Bypass), Birzebbuga, Marsaxlokk, Naxxar, Qrendi, Pembroke, Qawra, Safi and Marsaxlokk.

There will also be around 65 maisonettes and 63 attached garages in Mosta, Naxxar and Pembroke, as well as in Qala and Victoria in Gozo.

Applicants who are willing to buy in many localities have a very good chance of obtaining one of these units within one, two or three applications to the Housing Authority. However applicants who, for example (and as often happens), only put down one locality as their choice have far less chance to obtain one of these units where the price is at least 33 per cent less than the market price and in many cases far more!

While engaged couples are normally given points based on their age, families with children are given points according to the level of overcrowding, the number of habitable rooms, the number of children, and other criteria which seek to advantage those living in poor housing conditions.

Applicants to the Housing Authority can also, thanks to an agreement signed so far with HSBC and Bank of Valletta, benefit from some reduction on the interest rates. As interest rates are currently very low there is less subsidy available but obviously this can change very quickly if interest rates rise again.

The two main banks will also be present giving advice to our potential customers. Another important point to remember if you have no money for a deposit: as Housing Authority prices are so heavily subsidised, HSBC and BoV will lend you 100 per cent of the purchase price, because there is no real risk to them as the property is worth far more than your loan!

However before applying, go to your bank. Check carefully how much they will lend you and how much you can really afford to pay. Then and only then choose the properties in your price range. Property may well be the best investment of all but you still need to be sure you can afford it...

Ms Micallef Leyson is chairperson of the Housing Authority