Social housing tenants will have the opportunity to buy the properties they live in through a new scheme launched by the Housing Authority yesterday.
Addressing a press conference, Social Solidarity Minister Marie-Louise Coleiro Preca said the programme, called Sir Sid Darek (Own your home), would give a foothold to those trying to get on to the property ladder.
The government will hand out a 50 per cent subsidy based on the property’s market value.
Ms Coleiro Preca said this would be based on the locality and area, roof space, and the price of the land.
“Contrary to the way programmes worked under other administrations, we want this to reflect the realities of the current housing market,” she said.
The money generated would not go towards the Housing Authority’s multi-million euro debt but would help fix a number of problems in the island’s social housing service.
The government will hand out a 50 per cent subsidy based on the value
“The hole in the Housing Authority’s finances will not be filled now. This is far reaching and will take much longer. Instead, this money will go towards improving the reality faced by those in public housing,” she added.
Last December Ms Coleiro Preca announced that the authority’s debt was due to climb to €5 million by the end of this year.
The minister yesterday also announced a second housing project: the sale of 43 apartments, three maisonettes and four garages, all of which were vacant.
The properties will only be available to those with less than €40,000 worth of assets and the scheme will mostly target first-time buyers.
Ms Coleiro Preca said many of the properties had been allocated in previous years but agreements later fell through after tenants ran into difficulties securing bank loans.
She announced that the subsidy for purchase would be raised from 25 per cent to 35 per cent.
The €40 administrative fee would be halved, but those who buy properties would eventually pay the other €20.
In another first for the Housing Authority, applicants will be given a CD to view plans of housing units and have the opportunity to view the properties on site.