Housing schemes for the young

I refer to the letter National Policy On Housing written by Michael Camilleri on behalf of Żminijietna – Voice of the Left (June 26).

Mr Camilleri remarked that the Housing Authority’s schemes “do not address the problems young couples face when buying their first properties”.

May I kindly point out to readers the following schemes aimed at first-time buyers:

1. Grant to assist owners in the construction and/or completion or rehabilitation of a first home. Single persons of 24 years and over and persons with a disability of 18 years and over receive a grant of a maximum of €2,330; whereas engaged or married couples, people who are separated, annulled or divorced, single parents or widows with custody of children receive a maximum grant of €5,824.

2. An interest subsidy scheme provides up to a maximum of one per cent subsidy on interest on loans for those purchasing their first residence. A subsidy up to a maximum of one per cent is given when the base rate as established by the Central Bank of Malta or the European Central Bank is over 3.75 per cent. The subsidy is given for the first 10 years from the date of purchase. This scheme is open to engaged or married couples, separated or divorced persons, those whose marriage has been annulled, or single parents, all over 21 years of age and single persons above the age of 24. Persons with a disability and persons who lived in foster care or in an institution for a period of time can also apply for this scheme. They are eligible at the age of 18. This scheme is to be updated shortly to respond better to today’s reality.

3. Grant assistance on loan repayment. This scheme is for first-time buyers who are acquiring their first property from the private sector. A grant of up to a maximum of 30 per cent of loan repayments per year is given. Assistance is given for 10 years. An additional grant is given to single persons leaving residential care or those who have been fostered. This scheme is open to single persons, single parents, persons separated/divorced/annulled, married couples, engaged couples.

4. Skema kiri. Through this scheme, applicants can rent property directly from private landlords and apply for a subsidy on their monthly rent payments. At present, 1,200 applicants benefit from this scheme at a cost of over €1 million annually. It is another scheme which provides an opportunity to owners who wish to lease their vacant residential property to the Housing Authority for a minimum period of 10 years. These properties will in turn be sublet to our applicants.

5. Last month the Housing Authority issued 115 apartments, eight maisonettes and 98 garages for sale. This forms part of the scheme Darek Faċli – Ixtri Darek bil-Pass Tiegħek. These properties and garages were being sold at a subsidised price of 25 per cent of the commercial price. Besides having a subsidy on the commercial price, applicants will be benefitting from a new payment agreement in which applicants can balance the price of their property over a period of 20 years with no interest charged.

The Housing Authority liases with other social agencies and NGOs to offer support and assist different vulnerable persons.

May I also point out that in the coming weeks, the Housing Authority will be launching another scheme aimed at first-time buyers.

I suggest that readers browse our website www.housingauthority.com.mt. for further information.

Finally, I invite Mr Camilleri to contact my office to discuss further any suggestions and insights he might have.