Caruana’s Math: PN’s First-Time Buyer Scheme Helps 750 in a Decade

Imagine standing in the bustling Republic Street, Malta’s commercial heart, surrounded by the hum of chatter and the aroma of fresh pastizzi. Now, imagine you’re one of the 750 first-time buyers that the Nationalist Party (PN) promises to help over the next decade, if elected. That’s the reality that PN leader Bernard Grech paints with his latest proposal, a scheme aimed at making homeownership more accessible. But is 750 enough to make a dent in Malta’s housing crisis?

PN’s First-Time Buyer Scheme: The Nuts and Bolts

Grech announced the scheme last week, promising to help 75 people each year for the next 10 years. The scheme, dubbed ‘Il-Ħbieb Jdid’, would see the government providing a €20,000 grant to first-time buyers purchasing a home valued at €170,000 or less. But who exactly are these 750 people, and will they make a significant impact on Malta’s housing market?

750 in a Sea of Aspiring Homeowners

Malta’s housing crisis is no secret. According to the National Statistics Office, around 13,000 households are on the waiting list for social housing. Even if we consider only those who can afford to buy, the number of first-time buyers far outstrips the 750 figure. In 2020 alone, there were over 2,000 first-time buyer loans approved by banks.

the scheme’s €170,000 price cap might not be enough to buy a home in many parts of Malta. In Sliema, for instance, the average price per square meter is around €3,500, making a two-bedroom apartment well beyond the scheme’s reach.

Caruana’s Critique: A Drop in the Ocean

Labour MP and Shadow Minister for Finance, Tonio Fenech, was quick to criticize the scheme, arguing that it’s a mere “drop in the ocean” compared to the scale of the problem. He pointed out that the scheme would only help around 5% of first-time buyers each year, leaving the vast majority still struggling to get onto the property ladder.

Fenech also raised concerns about the scheme’s affordability cap, arguing that it’s too low to make a real difference in Malta’s inflated property market. He suggested that the government should be focusing on increasing the supply of affordable housing, rather than providing grants that might not go far enough.

: Will 750 Be Enough?

The PN’s first-time buyer scheme is a step in the right direction, but it’s clear that it’s not a silver bullet for Malta’s housing crisis. With thousands of aspiring homeowners still waiting, the question remains: will 750 be enough? , but one thing is certain – the housing crisis will continue to be a hot topic in Malta’s political scene.

As Grech himself put it, “This is just the beginning. We need a comprehensive plan to tackle the housing crisis, and that’s what we’re working on.”