Different policy challenges require different policy responses. This also holds true for the housing sector in Malta. The Housing Authority is sparing no effort to move away from the one-size-fits-all approaches to more comprehensive ones that best fit our country’s needs; ones that are tailor-made to target specific policy challenges and address different cohorts of our society.

Before elaborating further on our policy mix, it is best however to put things into perspective and give some context to the challenges we’re facing. Contrary to the perception that people just want handouts, many if not the majority of those approaching the Housing Authority for assistance aspire to own their own property. Yet for some reason or another, they find it difficult to achieve their target.

A particular cohort encountering such difficulties is that of people aged forty years and over who are trying to obtain a home loan since banks generally consider them to be too advanced in age to be granted loans. This is where the Housing Authority will come in. Through our policy mix made of different schemes and incentives, we tried to design policy solutions that help address these specific issues.

This is what lies at the heart of the recently launched Equity Sharing Scheme.

The concept is simple: the government shares ownership i.e. co-owns a specific property, with people whose age exceeds forty years thereby offering them a solution to address their housing needs through government assistance. . This represented, until recently, a gap for which there was no alternative in the housing market. It is indeed an opportunity, which when coupled with existing schemes, like the Social Loans initiative supporting low-income individuals and families, continues to deliver on the Government’s promise of providing a stream of affordable housing for all.

Eligible applicants are obliged to cover 10% of the property value on sale and are required to purchase a minimum share representing 50% of the property. As for the rest, the Housing Authority will purchase the remaining part. After 20 years, the beneficiary is obliged to purchase the Housing Authority’s share at the price paid by the authority at the time of purchase.

In this regard, the Authority will also be collaborating closely with local bank APS, which will be granting applicants a maximum loan of €160,000 for the purchase of a property in finished and habitable state or in shell form state, which can be rendered to a habitable state at the total expense of €200,000.

One might question both the scope of the potential beneficiaries of this scheme or the availability of such units on the market. I hold that in view of the fact that one of the major causes of strain in the housing market is the difficulties faced by older individuals seeking to purchase their residence; this scheme will be supporting several deserving households. Housing transitions later in life might occur for whichever reason; some would be getting married at a relatively older age whilst others would be facing a change in their marital status.

Over the years, I have met many such individuals who had explained these difficulties to me. Now, I am very pleased to see that such individuals are not forced to return to their parental home again or end up depending on the insecure private rented sector. The Equity Sharing scheme will help them fulfil their dream of becoming homeowners.

One should keep in mind that such schemes meant at offering security, stability and financial predictability provide a better quality of life and well-being for all the benefit households.

In the meantime, we consider this just the beginning. . We remain committed to intensifying our effort in order to introduce more measures with the aim of providing not only decent social and affordable housing opportunities but also to promote stability and support social mobility.

Leonid McKay is CEO of the Housing Authority