The types of properties being constructed in Malta should be diversified to meet evolving contemporary needs, including the fact that there is a growing trend that couples in a romantic relationship are buying two properties, rather than one, Housing Authority CEO Matthew Zerafa said.

Zerafa questioned whether the properties being constructed in the Maltese islands are appropriate in the modern day, given developing aspirations, needs and demographic changes.

"We are still building the same buildings that we were constructing 10-20 years ago, even though the population and economy has grown," he said.

In an interview with The Malta Independent on Sunday, Zerafa stated that the Housing Authority is able to step in to "optimise" such situations, including through regulatory measures if necessary. "Are we constructing properties that first-time buyers are looking for? Should we build bigger or smaller? Why are we seeing more and more single purchasers?" Zerafa asked in relation to emerging data in the authority's possession.

The authority's chief executive said that around 60% of first-time buyers are under 30, and that over half of first-time buyers since last year have been single purchasers. With this information, it comes as no surprise that the government has recently indicated that it wants to lower the minimum age for its equity sharing scheme - which enables applicants to purchase a residence with government support - to be available to 25-year-olds (from 30-year-olds).

To this extent, focus groups organised by the authority have found that many youths in a romantic relationship are choosing to buy two separate properties instead of sharing one. Officials are looking into why this trend is on the rise. "Zerafa also acknowledged the increased presence of foreigners in the Maltese islands today - many of whom are third-country nationals coming from non-European countries.

He stated that this segment of the residential population has different expectations for how homes should be, and that the coexistence of these contrasting realities and aspirations within the same apartment block is "causing new challenges to arise".

The Housing Authority is considering taking up models of housing with multiple occupants (HMOs) locally.

Looking into the future, the authority is trying to create a system for adequate housing providers. It hopes to propel forward different models of financing and supply so that "people will have more ways to enter the market, and for the market to respond to the same demand that is being created".

"Now, it's not an issue of accessibility/entry into the property market, different issues exist that have come with the change in society," Zerafa said.

In this light, he noted that when one purchases a property, they face certain trade-offs, for example, many want to purchase a house, though cannot afford one, and settle for an apartment. Zerafa said that the authority will remain "sensitive" towards these trade-offs.

The authority's CEO said he is worried about the rise in property prices; in 2024, the price of property rose by 5.2% on average, according to the latest statistics published by the NSO. Many youths are moving out of their parent's house aged 30 or beyond, Zerafa said, adding that he believes the authority can manage these scenarios through its present approach: by continuing to monitor emerging realities and adjusting assistances in real-time, if need be.

Another social factor that must be taken into consideration is Malta's aging population. "We have an ageing population problem and a very low fertility rate. This could have serious implications on our society," Zerafa said. "The most important thing we can do is monitor the market and adjust in real-time," he sustained.

Data analysis aids the authority's operations, for instance, in the allocation of property to applicants and in optimising its functions. Zerafa told this newsroom that 47% of first-time buyers choose to purchase a property in the same locality they grew up in. The authority tries to accommodate these wishes.

It also factors mobility challenges, for example, for senior citizens when determining the property assigned to an applicant. For this demographic, the authority has a novel model in Valletta where several senior citizens, who wished to reduce the size of their living space, were relocated to a block in the Maltese capital, and their former land was given to younger families.

One of the Housing Authority's main duties is to allocate social housing to people in need; it also assists people to become homeowners and pay their rent through its schemes. In 2020, it was assigned as a regulator to the private rental market. It also conducts embellishment projects on its existent blocks, as well as repairs to its tenants' buildings.

It is currently in the middle of its largest ever construction project - around a third of the authority's historically existent stock is being developed over the upcoming years. Additionally, it is administering properties (in total: 1,000+ units) deriving from the private market.

The Housing Authority's Compliance Unit was described as an asset in combatting abuses and shutting down the renting or squatting of government homes. The Housing Authority is working to be more proactive in anticipating cases of abuse, including by conducting routine inspections, Zerafa said.

Around 200 properties were repossessed by the Housing Authority in 2024 as a result of abuse; in 2023, it collected approximately half as many house keys. The authority is anticipating the repossession of as many properties back in 2025 as it did last year. These retrieved dwellings are re-allocated to those who need them.

To combat such abuses, the authority relies on the data-sharing of other governmental entities' systems, such as ARMS, the MTA, the Police and immigration police, the Lands Authority, the Department of Taxes and the Department of Social Security.

Zerafa outlined that oftentimes, abuses in social housing are accompanied by abuses in other facets, for example, in social services. Therefore, the authority maps out these sites to see which residential zones have noted multiple abuses with several governmental entities and potentially identify any geographical patterns.

Zerafa said that the authority has done away with its freephone to report cases of social housing abuse, in favour of anonymous online forms. He argued that a freephone must be manned around the clock and that online forms provide a clearer audit trail. The Housing Authority has received 342 online reports since this online portal was launched in August 2024. The general public is invited to report instances of abuse through the authority's website.

Zerafa attributed the authority's relatively new policy department as a central actor to its "intelligence-led approach". This team collects data on people's needs and on properties and their state of repair, and also delves further into the data behind the authority's schemes and repairs to observe any emerging trends. This allows the authority to observe if any people are passing through the safety net it offers and allows them to take a proactive stance to amend their schemes, if any drawbacks are identified.

Furthermore, Zerafa explained that increased digitisation of operations has made the authority more efficient overall - a crucial development, he added, given that these schemes are funded by taxpayers' money.

"Through digitisation, we can be more effective. We are updating our tools so that we can be more effective in handling the numbers we have today," Zerafa said.

This need to digitise all its services has been accelerated by the expansion of its roles in the past decade, and its rising number of clients.

The authority estimates to have 7,000 beneficiaries to its first-time buyer scheme up to April. It reports that it already has around 3,000 beneficiaries under the Housing Benefit Scheme.

The number of people on the Housing Authority's waiting list for social accommodation has "remained stable" in recent times, typically floating between 1,500 and 1,600 people at a time. In October 2023, the Minister for Social Accommodation, Roderick Galdes, told this newsroom that 1,400 people were on this waiting list at the time. Zerafa said that this is a stark improvement of just under 3,400 people on this waiting list during a point in 2017.

In this past interview, Minister Galdes had said that the government was investing in a "massive" project featuring the allocation of 1,700 apartments, spread across 22 localities. Zerafa said that development of many of these dwellings is at "advanced stages".

In 2023, NSO Malta revealed that 27.5% of dwellings in Malta were not occupied all year long, that is, were either secondary dwellings, seasonally used or vacant. In this regard, the Housing Authority aspired for the creation of a Property Registry to better identify these lands. At the moment, the authority only uses indicators - with the aid of other governmental entities - to have an idea of which properties may be seasonal homes, or vacant, or used for secondary means.

The authority's annual budget has increased ninefold in the past eight years. Zerafa described how with its additional responsibilities, the authority's annual budget has spiked from around €8 million in 2017 to an "enormous" budget of approximately €70 million today.

With Zerafa saying that all of the Housing Authority's schemes "should remain open", it is unlikely for this budget to decrease in the future.

"Our expenditure has increased significantly. We are always investing more and optimising these assistance schemes," he said.

As the authority's expenditure has increased, so has the number of clients it serves. The chief executive said that through this heightened budget and the authority's relatively new practices, it has become even more significant for the authority to retain the public's trust and uphold good governance.

"The amount of clients we are helping has increased considerably; we carry much greater responsibility because of this," Zerafa acknowledged.

The CEO said that the authority's budget has risen so drastically because of its sustained investments towards optimising (and adding onto) its assistance schemes, for example, the Housing Benefit Scheme, Equity sharing, the 10% Deposit Scheme and the New Hope Scheme.