Labour Leader Dr Alfred Sant has said that Maltese and Gozitan youth are finding it increasingly more difficult to buy their first home and start a family. He added that it is not Labour alone that is saying this, citing A Church Commission report which shows that young couples are having to borrow up to €93,000 (Lm40,000) from banks to buy an apartment. This means that for 35 years of their life, these couples are forced to pay between €4,600 (Lm2,000) and €7,400 (Lm3,200) in loan repayments and interest. The report concludes that Maltese youths have to stretch themselves to finance these debts, and this pressure is also becoming a major cause of family break-ups.

Labour is therefore proposing to implement incentives to help these young families live with more dignity, and with a better quality of life. Through the first incentive, a new Labour government will introduce schemes to give a 10% grant to those who buy their first home, as long as it’s value does not exceed €116,500 (Lm50,000). At the same time, Labour will give a subsidy on interest due on property loans, in a way that new home owners’ payable interest rates will not exceed 4.5% a year.

Another measure which a new Labour government will be introducing is to come to an agreement with banks to allow young families to stop paying loan repayments for 12 months in the eventuality that one of the breadwinners ends up jobless.

In total, these measures will give to young couples up to €15,500 (Lm6,600) rebates off the price of their new home.

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