MDA ready to participate in project with Government for apartments with €300 rent
The rents market was discussed between Prime Minister Joseph Muscat and the developers’ association, with the Prime Minister saying that the Government will announce in the budget measures to assist those who genuinely cannot cope with rents, however it will also see that all rents will start being registered. On his part, the association’s President Sandro Chetcuti said that the MDA is ready to participate in a project in which apartments may be rented between for €300 and €400 a month.
Prime Minister Muscat stated that a white paper with proposals on rent will be published soon, saying he is expecting that this creates a controversy. During the meeting with the Developers Association, Dr Muscat said that the Government believes that it should let the rent market having a free hand as much as possible and, at the same time, it should have a basic regulation.
The Prime Minister added that it cannot be that there are many rents not registered, and announced that a system will be introduced that each rent has to be compulsory registered. Dr Muscat stated that there will be measures in the budget that will assist families who genuinely cannot cope with rents.
The Prime Minister remarked that 80 per cent of Maltese are home owners and with property appreciation their wealth is increasing. On the other hand, he recognized that another 20 per cent are not in a position to purchase their home for different reasons.
The Developers Association President, Sandro Chetcuti, said that each inch of land is worth a lot of gold. He stated that the association feels responsible to contribute and assist those left behind. At the start of the meeting, MDA presented some of its proposals for the budget including that owners who rent with affordable prices for five years or more, should be incentivized when they transfer the property.
He stated that developers are ready to guarantee 10 per cent of the deposit requested by banks in order to issue loans for property purchases, if they have incentives. Mr Chetcuti said that MDA members are ready to increase the minimum pay of workers in the construction industry with at least 20 per cent. These workers need to have skills card, he added.
MDA is also offering that, through its experience, it enters into partnership agreement between the Government and private sector to establish an agency or foundation for the availability of apartments for rent with prices between €300 and €400 a month. Mr Chetcuti said that there is no scope for speculation in this proposal and it is being proposed for a social aim, saying that the association is concerned with the genuine situations of persons who are not coping with rents.