First shared ownership scheme in Malta

Minister for the Family and Social Solidarity Dolores Cristina, together with Housing Authority chairman Marisa Micallef, launched Malta's first shared ownership initiative on Friday.

In this first issue, a total of 132 units will be sold on a shared ownership basis. Ms Micallef explained that under this new initiative applicants could buy the share of the property they afford.

Applicants who cannot afford to buy the whole equity have the option to buy one third (Choice Two) or two thirds (Choice One) of the equity. The average subsidised price amounts to Lm22,500 if the applicant opts for Choice One and Lm11,250 if the applicant opts for Choice Two.

"Shared ownership is being introduced at this time to give more people the opportunity to experience the benefit of owning one's home. Particularly at this time of increased property prices, the need to give people a foot on the property ladder is even more pronounced.

"We are trying to find a balance between not giving away too much for free, yet helping those who help themselves. The commercial value of these properties amounts to Lm5,224,500," Ms Micallef said.

As in former sale issues, the properties are reserved for families with children, engaged couples and single persons over 30, or over 18 for persons with disability or those leaving an institution.

The first 10 per cent of the properties will be allocated to applicants with a disability. The units sold consist of 109 three-bedroomed units, 19 two-bedroomed ones and four one-bedroomed units.

The properties are located in 14 localities, including Birkirkara, Bugibba, Burmarrad, Lija, Marsaxlokk, Msida, Mtarfa, Naxxar, Pembroke, Qawra, Qrendi, Siggiewi, Xewkija and Zurrieq.

Changes have been introduced with regard to the income allowed. For a single person, the income will be calculated at Lm7,500 (previously Lm6,500); the joint income at Lm10,000 (previously Lm9,000).

Further changes concern the points system. In cases of engaged couples with children they will get the same points as married couples or single parents for their children living with them. And with this issue victims of domestic violence are receiving an additional 100 points.

Speaking at the press conference, Ms Cristina said that Government, together with the Housing Authority, was working on a range of initiatives to boost access to ownership as well as rental.

"Shared ownership is one model which can help lower income families and single people to fulfil their aspiration to be owners. For those for whom rental is a preferred and more suitable option Government, through the Housing Authority, is trying to access empty units in the private sector for those who need it and considering tax incentives to boost the participation of the private sector."

Plans of the housing units for sale may be viewed today and next Saturday and Sunday, between 9 a.m. and 4 p.m., at Habitat Hall (opposite Boffa Hospital), where assistance will be available from Housing Authority staff as well as bank representatives.

Application forms can be otherwise collected from the Housing Authority, 12, Pietro Floriani Street, Floriana, or 25, Enrico Mizzi Street, Victoria, Gozo, during office hours. Closing date is August 30, at 1 p.m.