Moviment Graffitti said yesterday that it supports the call for social justice in the housing sector made by the Diocesan Commission for Peace and Justice. The pressure group said that housing must be seen as a social need, not as a means for speculation and unsustainable development.

The organisation said: “In the past few years, our country has witnessed numerable development projects at unsustainable rates. Mega-projects have been constructed, and others are on the way. The list includes Portomaso, MIDI, Crowne Plaza and other development in areas previously occupied by Mistra Village, Ta’ Cassia, Pender Place, The Palms, the Galaxy Hotel and others.”

While all these developments are taking place, property prices keep increasing, it said.

“Currently, one out of every four properties remains unoccupied, and the number will probably keep increasing as the construction frenzy may intensify due to Malta’s entry in the eurozone, when many people with undeclared money will probably invest in property development among other investments. In addition, the government’s recent decision to extend Malta’s development zone has resulted in more available land for such development,” Graffiti said.

It added that while property speculation is the order of the day, thousands of low and middle-income families and individuals in Malta are finding it hard to buy or rent property, or to afford their mortgages.

“The unreasonable interest rates and charges imposed by banks are making matters worse. These banks are making unjust profits at the expense of these groups of people. Such matters can result in more people falling below the poverty line.

“The state must address these problems. Tax on vacant property could be introduced in order to discourage speculation and encourage the use of such properties. Such taxation could help increase pressure on the ever-increasing property prices,” Graffiti said.

The organisation also suggested the imposition of fixed interest rates, checks on the charges made by banks and the regulation of property prices.

Given the small size of Malta, and the hefty increase in prices,

it is questionable whether free-for-all market practices make sense in such a sector. “Housing is a basic social need, and the state should work in the interests of low and middle income families, rather than leaving it in the hands of the unjust and unsustainable interests of property speculators and land developers.”