Caruana’s Math: PN’s First-Time Buyer Scheme Falls Short

Imagine standing in the heart of Valletta, at the foot of the Grandmaster’s Palace, gazing at the ‘For Sale’ signs dotting the historic city’s skyline. You’re a young Maltese professional, dreaming of turning one of those signs into a ‘Sold’ sticker. But how realistic is that dream, especially with the current housing market? According to Partit Nazzjonalista (PN) leader Bernard Grech, not very, if his party’s first-time buyer scheme is implemented as planned.

Numbers Game: 750 Buyers in a Decade

Grech recently revealed that, under PN’s proposal, only 750 first-time buyers would benefit from their scheme over a 10-year period. That’s less than 80 buyers per year, in a country where the demand for affordable housing is far greater. To put that into perspective, in 2020 alone, there were 2,637 first-time buyer applications, according to the Housing Authority.

“We’re not talking about a drop in the ocean here,” Grech admitted in a recent interview. “But it’s a start. We need to do something to help our young people onto the property ladder.”

How PN’s Scheme Works

PN’s scheme, announced earlier this year, promises to help first-time buyers by offering them a 10% grant on the purchase price of their new home, up to a maximum of €15,000. The grant would be available for properties valued up to €300,000, with the aim of making homeownership more affordable for young Maltese couples.

However, critics argue that the scheme’s €15,000 cap might not be enough to make a significant difference in Malta’s expensive property market. A quick glance at the property listings in towns like Sliema or St. Julian’s reveals that €15,000 is often less than the difference between the asking price and the bank’s loan limit.

Alternatives and Criticisms

Labour MP and Shadow Minister for Housing Clifton Grima was quick to criticize PN’s scheme, arguing that it doesn’t go far enough. “We need more ambitious targets and a more comprehensive approach to housing,” he said. “We’ve seen in the past that piecemeal measures don’t work. We need a holistic strategy that tackles affordability, supply, and demand.”

Grima pointed to Labour’s own housing initiatives, such as the Affordable Housing Scheme and the Rent Control Act, as examples of more effective policies. But with the next general election looming, both parties are under pressure to come up with innovative solutions to Malta’s housing crisis.

One thing is clear: the current state of play isn’t working for Malta’s first-time buyers. Whether it’s PN’s scheme or another solution, something needs to change. As Grech put it, “Our young people deserve a chance to own their own home. It’s not just a dream, it’s a right.”

“Our young people deserve a chance to own their own home. It’s not just a dream, it’s a right.” – Bernard Grech, Partit Nazzjonalista leader