Marriages are falling apart and young people are not getting married because they cannot afford to buy their own property, said Diocesan Commission for Justice and Peace chairperson Godfrey Leone Ganado last week.

Mr Leone Ganado was giving a presentation on housing to the House of Representatives Social Affairs Committee (SAC).

He pointed out that housing is one of the most fundamental rights of a human being and expressed his concern about the constantly rising price of property.

Between 2004 and 2005, there was a 56.5 per cent increase in the price of property, while the price of maisonettes increased by 48 per cent, he said.

“If a couple earns a total of Lm10,000 a year, after tax and national insurance is deducted they are left with around Lm8,000, which is around Lm450 a month,” said Mr Leone Ganado.

These couples have no other alternative and have to take out a loan to buy property, he said, as renting is not an option.

He queried whether something could be done about the central intervention rate – because once that increases, the month loan increases accordingly.

“People in the lower strata of society who have house loans are the first to be negatively affected when the central intervention rate increases,” said Mr Leone Ganado.

It is time banks acquire a social conscience, he added.

“Social conscience has nothing to do with corporate responsibility but a matter of giving your clients the right to live with dignity,” he said.

Mr Leone Ganado suggested that first time buyers should not be affected by an increase in the central intervention rate.

“It is constantly increasing – at a rate of almost six per cent a year,” said Mr Leone Ganado.

He suggested introducing tax incentives for people who are paying loans adding that a number of reforms are needed in the rent law.

However, SAC chairman Clyde Puli pointed out that the increasing price of property is not only due to developers but also depends on a number of factors such as limited space.

People still prefer to buy property instead of renting and there is nothing wrong with that, said Mr Puli.

“I do not think that changing the rent laws will change the property market,” he added. “I understand that there is still great injustice but a lot can be done if the inheritance clause in the rent laws is removed.”

Mr Leone Ganado expressed his doubts as to whether the Maltese MEPs are working on the issue of housing.

Furthermore, he said, any reform to the rent law will help out couples who cannot afford to buy their own property.

Nationalist MP Michael Gonzi pointed out that young couples do not only have the financial burden of a new house but also have other expenses.

He asked Mr Leone Ganado if he had carried out research to sustain his claims that many marriages are breaking down due to the price of property.

“I cannot understand how the price of property keeps on rising yet people still keep on buying,” said Dr Gonzi.

He pointed out that Mr Leone Ganado mentioned a lot of solutions but asked if he had approached economists and people in the field for their opinion on the central intervention rate.

“The central intervention rate does not only affect housing but is important to health and pensions,” said Dr Gonzi.

The separations problem is not caused by the house loans but because young people do not plan properly, he explained.

“It is here that you and the Cana movement can help – especially on economic planning or family planning,” said Dr Gonzi.