.......Assistance for first-time buyers

First-time buyers are the spark without which much of the housing market would be very subdued. There is also no doubt that we have a very healthy rate of home ownership in Malta and we have it for two undeniable reasons.

Firstly it always has made more sense to buy than to rent if you can, and secondly, at this stage people can afford to buy. The situation will only change drastically if buying becomes out of reach for most first-time buyers, a situation which is the case in many prosperous countries like Germany and Switzerland.

There are many who are worried at the rate of house price increases locally but there are many more (the majority) who are gaining from it too. I do sometimes wonder if the main exponents of renting in Malta, the ones who wear green clothing, have opted to rent or to buy when they were in a position to be first-time buyers, and what their aspirations are for their children.

The undeniable fact is that most of us are owners because we choose to be and can afford to be.

However it is undeniable that expenses are enormous particularly for the first-time buyer, and as we Maltese buy bigger than we need (we buy a three-bedroomed place before any children have arrived but once again, if we can so far afford to, why not?) and we also finish our new homes relatively expensively, the expenses rise even further.

The other important thing about this scheme is that it stresses the importance of claiming a fiscal receipt when you are building or finishing your new home or converting an old house.

Many do not, happy to save on the VAT but it is a short-term saving.

Besides being wrong you are also in trouble if anything goes wrong and you certainly cannot apply for refunds if you have not paid VAT in the first place.

The old scheme basically only assisted engaged couples and married couples. Now we have included other groups acknowledging that society is changing and that while most people are still marrying and staying that way those who do not, or choose not to, are not exceptions but a substantial interest and need group all to themselves.

Those who go out and help themselves and work hard to buy their own home deserve some encouragement too!

It is important too that we have a clear profile of those who are buying their own home in the private sector (as opposed to the small number who buy from us) and see what their income and assets are so we can better ascertain who needs more assistance and when, i.e. at what stage in their lives.

Before, separating parents were precluded from buying, as one could argue that this was not their first home. However it is important to acknowledge as well that these couples are going through difficulties but are also helping themselves (often with considerable help from their families) and this should be encouraged.

A new category is those who want to buy their own first home but are not able, willing or inclined to marry for many reasons. They too, if they make the effort to become home owners, can now obtain these refunds.

At this stage you have to be over 30 to apply if you are single, in line with our other ownership scheme. We also cannot predict what the demand will be so it is important to go cautiously at this point.

However, in another move which acknowledges the growing desire of those with disabilities to lead single lives, and society's increasing willingness to help them, assistance will be there for single people over the age of 18 if they have a disability.

We now know for certain, that the main needs group, for housing at least, are the single-person households and this is a further positive move in this regard.

This government has worked very hard to promote home ownership and the results are there for all to see. There are still problems and shortfalls but this scheme is another positive move in the right direction, that of promoting home ownership and assisting all first- time buyers who belong to different family types.

Ms Micallef Leyson is chairman of the Housing Authority.