What measures for affordable housing for our youths?
The study published last week by Calvin Vella for Solidarjeta’, together with statistics on house sale prices published by the NSO, is confirming that it is becoming extremely difficult for Maltese people, in particular young people at the beginning of their working life, to be able to rent or own their own property.
While the Minister for Affordable Housing can afford multiple residences in Malta, Gozo, Britain, Sicily, North of Italy and it is being rumoured that the Prime Minister, apart from his Marsaskala residence, Zejtun villa, Xewkija B&B, also has a ranch replete with horses in Sicily, the results of the Solidarjeta’ study clearly show that the majority of locations and regions are not affordable to tenants.
The NSO statistics just published show that property prices rose by 5.7% in the third quarter of 2025, compared to the same period the preceding year.
We are now at a point where people earning €35,000 or even €40,000 are forced to rent in the cheapest localities and cannot even afford the median rental rate. Momentum Treasurer Carmel Asciak said, “How are all those citizens who earn less than €40,000, and there are many, going to be assured that they get basic decent housing during their whole lifetime?
Momentum supports and endorses the several recommendations made in the study, which have been summarised in the Appendix below. To these, we once again highlight our recommendation of applying a tax on the second vacant property onwards. This measure will discourage owners from holding empty properties, lower market prices on purchasing or leasing property, and generate funds for social housing projects.
In practice, this would mean that, e.g., a person owning 6 properties, of which 5 are occupied, would not be taxed on the one vacant sixth property. But the same person with 6 properties of which only 4 are occupied would not be taxed on the fifth property, but would be taxed on the sixth one, it being the second vacant property.
Appendix – The recommendations supported by Momentum
- Ensure Housing Cost Burden Does Not Exceed 25% of Income: This recommendation seeks to align Maltese policy with the European Union Housing Partnership’s benchmark, ensuring that housing costs do not constrain household expenditure on other essential items such as food, healthcare, and education.
- Introduce Rent Controls: To combat rent increases that significantly outstrip wage growth, the study recommends implementing temporary rent freezes, limitations on the frequency of increases, and caps on maximum allowable hikes.
- Incentivise Long-Term Contracts: Currently, less than 7% of rental contracts in Malta extend beyond one year. The study recommends mandating or incentivising multi-year leases to provide tenants with greater security of tenure and cost predictability.
- End No-Fault Evictions: This measure would remove the broad power landlords currently hold to terminate tenancies at the end of a contract period, even when tenants have fully complied with their obligations.
- Compensate Tenants for Illegal or Constructive Evictions: The study suggests expanding the remit of the adjudicating panel to allow for financial compensation for tenants who face unjust or constructive termination of their leases.
- Full HBS Subsidies for Re-applicants: This aims to eliminate the immediate financial gap and rental arrears created when tenants re-applying for the Housing Benefit Scheme (HBS) experience processing delays following a contract change.
- Broaden Eligibility for HBS: The study recommends expanding the eligibility criteria to include a wider range of tenants who are currently excluded from support despite facing acute affordability challenges.
- Substantially Expand Social and Affordable Housing Supply: A key recommendation is to move away from market-driven housing and establish a minimum quota of 30% for social and affordable units in all new developments by 2030
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