Alternattiva Demokratika has called for more affordable housing through a mix of measures by the state and the private sector.

Michael Briguglio, AD's spokesman for Social and Economic Development, said that while rent-law reform couldhelp ease future increases in house prices, vulnerable groups should be the target of social welfare in relation to housing. These included first-time buyers who could be helped through schemes such as government subsidies on bank loans; as well as provision of affordable social housing for low-income earners.

Mr Briguglio added that other vulnerable groups who deserved attention, included persons entering pensionable age who were not home-owners and small enterprises that could not cope with property costs.

Increased expenditure on housing policy could be financed through disincentives on property speculation from an owner's third vacant property onwards.

AD also proposed the introduction of fiscal mechanisms to encourage the renting of properties kept vacant for speculation purposes, and aid for people to refurbish their old property.

AD chairman Arnold Cassola urged banks to take a more ethical stance with regard to house loans, introducing better incentives for groups such as first-time buyers. He said AD believed the government should give housing policy more importance in the forthcoming budget.