The Housing Authority has reported a very good response to its equity sharing initiative, with 79 applications being registered within a short period.

The scheme aims to help first-time buyers who want to purchase property from the private sector. In cases where the price of the property cannot be reached through a bank loan the authority helps by covering the shortfall between the sum that can be borrowed and the price of the property.

Under the scheme the Housing Authority finances up to Lm10,000 for the purchase of a first residence in shell form and up to Lm14,000 for the purchase of a first ‘finished’ residence. The authority thus becomes a part owner of the purchased residence. Applications for the purchase of property whose value does not exceed Lm50,000 will be given preference. However all property is being considered.

Commenting on the initiative, Housing Authority chairman Marisa Micallef said: “The Housing Authority board is hoping that models of equity sharing will become the main way we help first time buyers in the future, while we reserve shared ownership for slightly lower income groups as well as groups with more particular needs. At this stage with prices still or not rising with the same rapidity as in recent years it may be an excellent time for first time buyers to negotiate and find their first home. Currently the scheme is still in its infancy and we hope, depending on the clients we attract to further enhance it, so it can help more people, not least single people under 30 who are excluded for the time being, but whom we hope to also help in the near future, funds permitting of course.”

Beneficiaries are not obliged to buy back the investment made by the Housing Authority before 10 years from the date of sale of contract. After this period the Housing Authority will obtain the necessary information in order to verify whether the applicant is in a position to pay back or take an additional loan to purchase the share the authority has in their residence.