The Pastoral letter issued last Sunday by our bishops on the questions and problems faced by Maltese and foreign couples wishing to rent an apartment hit the nail on the head. People, especially young couples, are facing increasing challenges not only to rent an apartment going from €600 to €800 a month but also to buy apartments in which to live and start a family. The pastoral letter was excellent, highlighting the issues admirably. It uses a very interesting word to underline the failings of the present situation. A social ecology is lacking!
The word 'ecology' assumes the presence and knowledge of an interacting system of living beings in a dynamic inter-relationship that may be symbiotic or parasitic in nature but which forms the basis of a sustainable system found amongst living things.
In human ecological systems, of course, the parasitic model is not acceptable, but only a symbiotic one. At the moment, however, this is unfortunately what we have under this present neo-liberal government: a parasitic system where the landowner preys off the demand for housing due to the sharp increase in land and property prices. We have a free market for the creation of goods, but we do not have a social market for the fair distribution of those goods.
Eighty per cent of the population may be able to put up with this system but the other 20 per cent who fall through the cracks are unable to cope. This 20 per cent, unfortunately, tend to become politically insignificant as their votes are not needed for any election victory. The result is that not only do couples or individuals have nowhere to live, but end up living in substandard housing.
Does this mean that we should go back to the system of regulated rents which, in effect, robs the owner of his or her property over a number of years creating a low rental market and making fewer houses available to rent and only pushing the buying market. I do not think so, but something needs to be done and, as yet, the government has done nothing.
There are plans to ease the housing issue through the state building cheap and affordable housing to be made available to the more needy members of the public, but this measure alone will never be enough. For every one person you help with this system, 20 people will be let down. The state also subsidises the rent of people in need but, again, where does one draw the line, considering that it is never enough and the state has finite resources?
Many Ministers of State responsible for social housing have failed to be re-elected over the years because of this very problem! So what can the state do that it is not currently doing? Without directly tampering with the market, it can do much more of what, to date, it has not done at all. First, it must tackle the educational issue of peoples' aspirations. Everyone would like a villa with a garden and a swimming pool, but people should be educated to get their priorities right. One might not be able to afford - or need - such accommodation yet and it would be better for everyone to face reality, at least until the particular family's financial situation becomes rosier. The educational aspect here is highly lacking and has to be confronted quickly. Young people have a very idealistic outlook, but it is best to temper this outlook with the education necessary to be realistic! Unless this is done intelligently, aspirations will tend to sideline expediency, especially when children come into the equation!
Legal/social incentives may be applied to encourage owners to let their property over longer periods - at least until married couples have raised their children and helped them on their way. Tax incentives for property owners can help establish a social market that favours long lets over short ones and slows down the tendency for inflation. This would stabilise the day-to-day budget requirements of most families, and projections can be carried out effectively.
Another issue that is not considered at all here is shared ownership. Sharing the purchase of a property can ease the buying and rental markets considerably, especially for young people who opt to live in smaller shared properties. Even if only one person/family is living in a co-owned property, part ownership helps ease the rent of the other half or third! This alternative option is not even explored or offered here, when it is a very common option abroad.
Then there is the issue of borrowing money for the purpose of buying a property. Buyers are forced to borrow money to buy a house from our commercial banks at commercial lending rates! These commercial rates of interest may be too steep for them to pay off which, in effect, raises the price of the property considerably and helps to inflate prices. In other countries there are NGOs with the primary objective of helping people borrow money to buy or rent property without the added burden of having to pay commercial interest rates!
These NGOs of the third non-profit sector of the economy are non-existent here but are commonly found abroad in markets such as London, where property values are considerable. Of course, these NGOs have to be set up by institutions with strong financial guarantees but this is possible! This is one area in which the Church here can be of considerable help. Housing NGOs make enough money to cover their costs and wages but do not make money for profit per se! What is needed, however, is someone - or several individuals - to set them up.
The third sector of the economy in Malta is often neglected and overlooked as a solution to problems, and options or solutions are sought only in the first or second sector of the economy. Civil society needs to wake up here as well!
There are other things that can be done to tackle the situation more seriously and assiduously and all one needs to do is study the situation and seek advice from eco social market economies where there are similar housing issues. University faculties can also help by coming up with solutions! These efforts should be the function of both the state and of the whole of civil society. And the environment should not be made to pay the final price for this lack of living space, either! We live in a small country where open spaces are problematic and continue to diminish at an alarming rate! I congratulate the Catholic Bishops on this initiative and like their brilliant initiative to create hospice palliative care rather than clamour for euthanasia. I also hope they can assist with the setting up of NGO foundations for helping social housing issues, amongst others. Other institutions and existing or new foundations can also help. Well done for a pastoral initiative where it is heartily needed!
Dr Michael Asciak MD, M.Phil, PhD.
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