Alternattiva Demokratika – The Green Party has expressed its concern on the fact that housing is becoming much harder to afford, as recently confirmed by economic research by Joseph Darmanin which was published in the Bank of Valletta Review. AD said that housing prices should be made more affordable through a mix of measures by the State and the private sector.

Michael Briguglio, AD’s spokesperson for Social and Economic Development said, “This research states clearly that the general escalation of property prices, has potentially reached an unsustainable level from a socio-economic perspective. In this regard, AD believes that whilst rent-law reform can help ease future increases in house prices, we also believe that vulnerable groups should be the target of social welfare in relation to housing. These include first-time buyers who can be helped through schemes such as Government subsidies on bank loans; as well as provision of affordable social housing for low-income earners.”

Briguglio added that other vulnerable groups who deserve attention, amongst others include persons entering pensionable age who are not home-owners and small enterprises that cannot cope with property costs. Increased expenditure on housing policy can be financed through disincentives on property speculation, from an owner’s 3rd vacant property onwards.

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

Prof. Arnold Cassola, AD Chairperson, added, “AD urges banks to take a more ethical stance with regard to house loans, thus introducing better incentives for groups such as first-time buyers. In particular, we also believe that housing policy should be given more importance by the Government in the forthcoming budget.”

Permalink: Housing should be made more affordable – AD