The Housing Authority is hoping property owners will recognise the benefits of a newly launched scheme.

It said today it has been operating a rental subsidy scheme, known as Scheme R, since 1999.

Through this scheme, families and individuals can rent property directly from private landlords and apply for a subsidy on their monthly rent payments. 1,200 households benefit from this scheme at a cost to the HA of over €1million annually.

The government is further strengthening this scheme through tax incentives by introducing a reduced withholding tax rate of 10 per cent.

Replying to a recent statement by the Malta Developers Association which said that the authority was making the scheme too bureaucratic, the HA said that in addition to this scheme, it has also been concurrently investing over the years in a robust development programme to address the disparate needs of its clients.

"Following the property market slowdown and the resultant rise in the number of vacant residential units, the authority recognised the need to downsize its development programme and tap into the private property market to meet the requirements of its applicants.

"The newly launched private property rental scheme will be operating in parallel to Scheme R."

It said this scheme was, in essence, a renewal of a scheme launched in 2006 when response from the private sector was very disappointing.

However, the Housing Authority entered into a 10-year agreement for a block of apartments in Qawra.

This worked smoothly to the satisfaction of the Authority, the landlord and tenants.

The HA said that as the current property market situation is somewhat different from what it was was five years ago and the authority is optimistic that more private property owners will recognise the benefits of the scheme.

"The strengthening of Scheme R and the launch of the new rental scheme mark a new phase for the Housing Authority as it develops and implements sustainable housing policies that take into consideration the wider environmental and economic realities nationwide and beyond.

"Property owners will retain the right to inspect their properties and will be entitled to hold the Housing Authority, as their lessee, to account for any breaches in lease agreements.

"Moreover, the authority will be in turn enforcing the strict observance of rental agreements to ensure its tenants fulfil their obligations, respect their neighbours, and keep the properties well maintained."

The HA said that non-compliant tenants risk immediate termination of their contracts.

An information campaign will be launched in January to explain the benefits property owners interested in renting their vacant apartments to the authority will enjoy, including a five per cent withholding tax rate, and a stable and assured income for a minimum for 10 years.

Sign up to our free newsletters

Get the best updates straight to your inbox:
Please select at least one mailing list.

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.