Nationalist Party leader Alex Borg says buying a home is becoming increasingly difficult, as opposition figures call for less bureaucracy and a more accessible property market.
Buying a home in Malta is becoming increasingly challenging as property prices continue to rise faster than household incomes, according to Nationalist Party leader Alex Borg.
Speaking at a discussion on affordable housing on Sunday, Borg said prospective buyers were facing mounting financial and administrative obstacles, despite housing assistance schemes introduced by successive governments.
The meeting formed part of the Nationalist Party’s consultation with stakeholders and social partners ahead of the budget, with participants examining the difficulties people encounter when trying to purchase a property.
Housing shadow minister Stanley Zammit highlighted the gap between property prices and earnings. He said prices had increased by almost 7% over the past year, compared with average household income growth of around 4%.
The figures, cited during the discussion, suggest that property values are rising more quickly than the incomes available to people hoping to buy.
Rising property prices put homeownership further out of reach
The difference between house-price growth and income growth can make it harder for prospective buyers to save for a deposit and qualify for a mortgage.
When homes become more expensive while earnings increase at a slower rate, buyers may need to accumulate larger deposits or borrow more to purchase a property.
Borg said the affordability problem was affecting more than young couples starting out. Single people, separated individuals and older residents seeking to move into smaller homes were also experiencing difficulties.
His remarks highlighted the range of people affected by the cost of buying property, including those who may be looking to change their living arrangements later in life.
The discussion did not provide details of individual housing schemes or establish how many prospective buyers were unable to purchase a home.
Opposition calls for a one-stop service to simplify buying a home
Borg argued that people seeking to purchase property should not have to wait years for improvements to the system.
He called for an effective one-stop shop that would help buyers navigate the different authorities and administrative procedures involved in purchasing a home.
The proposal is intended to reduce bureaucratic obstacles and make the process easier to manage.
However, simplifying property transactions would not, by itself, resolve the affordability gap identified during the discussion. The price of homes relative to household earnings remains a separate challenge for people trying to enter the market.
Borg said economic growth should translate into opportunities for people to buy their own homes, rather than leaving prospective purchasers struggling to access the property market.
Housing discussion brings together industry and social policy representatives
The consultation included contributions from people working across property, education, professional regulation and family law.
Participants included estate agent and Malta Developers Association member Andrew Bugeja, KSU social policy officer Julie Ann Camilleri, Kamra tal-Periti president André Pizzuto and family lawyer Stephen Thake.
The discussion was moderated by Andrew Camenzuli.
The consultation formed part of the Nationalist Party’s preparations ahead of the budget, with affordable housing among the issues being raised with stakeholders.
For people hoping to buy in Malta, the central concern remains whether earnings can keep pace with property prices—and whether changes to the purchasing process can make homeownership more accessible.
