Housing too expensive -AD

Alternattiva Demokratika has urged the government to intervene amid concerns over unaffordable housing.

AD issued a statement in reaction to research by Joseph Darmanin, an economics officer in the Financial Stability Office at the Central Bank of Malta, published recently in the Bank of Valletta Review.

Mr Darmanin concluded that, "escalation in house prices coupled with sluggish income growth suggests that affordability is becoming a problem in Malta".

AD's social and economic development spokesman Michael Briguglio said that property prices should be made more affordable through a mixture of measures by the state and the private sector.

"AD believes that while rent-law reform can help ease future increases in house prices, vulnerable groups should be the target of social welfare in relation to housing.

These include first-time buyers who can be helped through schemes such as government subsidies on bank loans; as well as provision of affordable social housing for low-income earners," he said.

AD is also proposing the introduction of fiscal mechanisms to encourage the renting of properties which are kept vacant for speculation purposes, as well as aid for people to refurbish their old property.