Alternattiva Demokratika presented a number of proposals to the housing problem yesterday while criticising the policies of both the government and the Opposition, policies the Greens described as “repetitive, weak and expensive”.

Party deputy chairperson Stephen Cachia said, “It is disappointing that when faced with the housing problem all the government and the Opposition have are the same set of proposals that simply throw money at the problem without dealing seriously and courageously with the causes. The Nationalist government doesn’t seem intent on tackling the problem seriously, preferring to gain politically on the sharp rise in property prices, while extending further building into the countryside. The latest proposals from Labour, on the other hand, attempt to create the impression that the granting of more direct subsidies and interest rate subsidies will solve the problem.

“However, this is false for two reasons. The first is that the assistance proposed would only be given to first time buyers, leaving out the rest of the population who are still burdened with heavy house loans or rents.

“The second is the fact that direct assistance will only serve to make housing more affordable and incentivise developers to raise their prices further. Labour’s proposals will cost the countries several million and Alfred Sant has not yet explained which source will pay for these subsidies.”

Edward Fenech, spokesperson on finance, tourism and the economy, stated: “The solution to the housing problem is much simpler than the government and the Opposition make believe. However, it is a solution that demands political courage, a quality our political adversaries seem to lack.

“Malta possesses vacant property stock of at least 40,000 residential units. That is twice as many properties that exist in Gozo for example. For a host of reasons, these properties are not on the market, and a very substantial proportion of them are in a dilapidated state. We believe that the most effective and cheapest solution to the housing problem is the introduction of an advantageous tax mechanism to place more of these properties on the market, as well as legislation to ensure that vacant properties are maintained in a decent state of repair. In the pre-budget exercise, we specifically proposed that all properties that are not the owner’s primary or secondary residence are to be subject to a flat rate 15 per cent charge on the assumed value of the rent of the property, being three per cent of the property’s capital value. Thereafter, any rent received from this property will be tax-free.”

“Just to illustrate a typical example – an apartment worth Lm40,000 that lies vacant will be subject to an annual charge of Lm180 payable every year, but any rent received by the landlord thereafter will be tax free.

“In addition, we have proposed that there must be legislation in place that ensures that all vacant properties are kept in a decent state of repair; at least the façades of these properties.”