Joseph Farrugia (‘When prudence is missing’, December 12) is talking through his hat when he compares Ireland’s property bubble 10 years ago with Malta’s current housing situation. Amazing, when you would think that a costless search on the internet reveals otherwise.

First, he states that prices are skyrocketing in Ireland. Whereas, the residential property price index in Ireland rose by 11.1 per cent per annum between 2005-2007, it fell by 15.8 per cent per annum between 2008-2017. Between the low point in 2012 and 2017, it rose by 9.3 per cent per annum but is still 21 per cent below the 2008 peak. That is a property bubble, being a boom followed by an almighty bust.

Second, he states that prices in Malta are skyrocketing too. The Central Bank’s property price index rose by nine per cent per annum over nine years to 1999, by 7.3 per cent per annum over eight years to 2008, by 1.7 per cent over seven years to 2015 and by 9.7 per cent per annum between 2015-2017. Between the low point in 2009 and 2017, there has been a rise of five per cent per annum. There is no boom and bust here but a secular increase throughout 27 years.

If one looks at the situation in terms of housing cost overburden in Malta, rent at market prices has gone down from 30 per cent between 2007-2009 to 21.2 per cent between 2013-2017. Free or subsidised rent has dropped from 2.9 per cent to 1.3 per cent during the said respective periods.

In the EU28, both rent overburden at market price and free rents have been stable over 10 years. In Ireland, however, while market price rent overburden has become moderately less of an overburden, social rents have actually more than doubled.

These are the facts. I am not saying the government should not watch this but it is a far cry from “virtue thrown to the wind”.