Issue link: https://maltatoday.uberflip.com/i/1482987
maltatoday | SUNDAY • 30 OCTOBER 2022 6 BUDGET2023 THE last time I addressed Parliament a few days ago, I reiterated that the prin- cipal aim of politics should be to create a country where the future generations' aspirations may be met. The only way to renew ourselves as a nation is to make sure that the youths that are on their way up in society can dream of building their future here, amongst us, in this country. Whilst it is true that the desire to be- come a homeowner has its socio-cul- tural roots in specific circumstances that arose in the past couple of decades, it cannot nonetheless be denied that in Malta this desire to own our own res- idence remains very much alive and kicking. One can understand this desire since it represents the step which pro- vides the greatest stability and certainty in the long-term to whoever embarks upon it. Despite our best efforts in these past couple of years to regulate and fi- nancially incentivize players to create the conditions for a stable rental market which does not intimidate people who turn towards it, the main aim of Maltese families and young individuals remains that of acquiring their own property and becoming its owners. Therefore, the affordability of the property sector is one of the main pil- lars, together with other essential mat- ters, that will make or break the dream of future generations of building their future in this country. The Government has acknowledged this sentiment for a long time. It is a feeling that we've gauged throughout this past decade as the property market fast became one of the sectors which witnessed the sharpest increases in prices, a hike which was linked direct- ly to the unprecedented growth in our economy. Our challenge remains that of balanc- ing the need of keeping the investment flowing in the property sector since it is a vital component of our economic ma- chinery, and at the same time ensuring that substantial parts of this market re- main accessible to those who are trying to enter the market for the first time – the so-called 'first-time buyers' cohort. I've wasted no time since the com- mencement of my new tenure as Min- ister for Social and Affordable Accom- modation to make it crystal clear that the main challenge ahead of us shall be tackling the affordability of hous- ing. Our intentions were made even clearer when we immediately started a wide-ranging consultation exercise that involved youths at the forefront of the discussion. We also had lengthy talks with commercial banks that have a central position in the property mar- ket since they finance most purchases through loan facilities available to pri- vate clients. This process led us to announce a very strong measure in this legislature's first budget, a measure which shall im- pact virtually all first-time buyers. This measure shall alleviate a significant por- tion of the burden carried by individuals and young families, who have just start- ed their independent lives, and have fi- nally succeeded in purchasing their first residential property after many months of sacrifices. Through this measure, the Government shall grant the sum of €10,000 to every first-time buyer in the first ten years of the loan repayment period undertaken with the commercial bank of their choice. As promised in the electoral manifesto, this measure shall be open to all those who have finalized the purchase of their first property from the beginning of the calendar year 2022 onwards. This measure truly represents the boost that youths need to make the next step. When one considers the fact that we have thousands of first-time buyers every year, one may appreciate that this substantial measure shall represent a significant financial outlay on the part of the Government. It is also testimo- ny to the Government's willingness to listen and understand the sentiment of future generations in respect to these challenges, and its commitment to make available any and all instruments at its disposal to youths, so they may be able to transform their dream of grow- ing and building their future in Malta, into a viable reality. Announcing new measures is a positive thing, but it's even better when an ex- isting measure is followed up, adapted, and optimized according to the needs of the day. That is what we've done with the 10% Deposit Payment scheme, which is also open to first time buyers, and which is now being strengthened through an extension which shall cov- er up to a maximum property value of €225,000 – an improvement of €50,000 from the scheme as announced in 2020 and which has already helped hundreds of young persons to become homeown- ers. We did not limit ourselves to the pur- chase of property, but in line with our belief that the housing sector is a di- verse and heterogenous policy area, we have also intervened in the rental mar- ket, and we have also been pro-active in this sense during this year's budget. In fact, this budget strengthened the pri- vate rent housing benefit scheme. This benefit, which takes into consideration the income of a family unit and what it is actually spending on rent, has been strengthened to respond to the most recent developments in the local rent- al market, developments which we can now gauge with more precision than ever through the rental price indexes which we are measuring in real-time. One must therefore recapitulate that these measures will continue to strengthen the social programme which the Housing Authority has undertaken since existing affordability measures, as well as adaptation and regeneration schemes shall continue to operate and shall be sustained accordingly. In the current global climate, rife with economic and social uncertainty, this budget has once again shown that the Government is in tune with the people's sentiments and preoccupations and that it wastes no time in acting in a decisive and effective manner. In the housing sector, we have once again intervened strongly to make sure that everyone has an adequate and affordable array of choices to suit his or her housing needs. The boost youths need Roderick Galdes Minister for Social and Affordable Accommodation