Equity sharing scheme 'being restructured'

The Social Policy Ministry said this evening that the equity sharing scheme for first time home buyers had been suspended pending restructuring to make it sustainable.

It pointed out that when the scheme was launched, in February last year, it was declared that the Housing Authority would process at least 250 applications on the basis of first come, first served.

By April 24, there were 242 applications, including 103 applicants who had already been granted €2.7 million. It was estimated that €3.8 million would be required for the other applications, a total of £6.5 million.

The government said it remained committed to the promotion of house ownership and would continue to come up with schemes to help those who needed to buy a house and required assistance.

The Housing Authority has informed those who have already applied for the equity sharing scheme that their applications will be retained until a decision is taken on the restructuring.

Labour social policy spokesman Marie Louise Coleiro Preca condemned the government decision to suspend the scheme, saying this contrasted sharply with election promises.