PM Abela defends first-time buyer schemes, highlights measures to prevent inflation

Prime Minister Robert Abela on Monday defended the first-time buyer schemes proposed as part of the Labour Party’s electoral pledges, addressing claims that they would drive up inflation.

At a Labour Party conference, a journalist from The Malta Independent pointed out that, since the Prime Minister announced additional assistance measures last week, potential buyers reported an increase of between €10,000 and €20,000 in property on the market. The question raised was whether such policies risk backfiring by benefiting developers while placing a heavier financial burden on young buyers.

In response, Abela defended the government’s approach, emphasising that safeguards are in place to limit inflationary effects. He explained that eligibility for assistance schemes is tied to price caps on properties, which he believes will discourage sellers from inflating prices beyond those thresholds.

According to Abela, property owners whose listings are close to the eligibility limit may be incentivised to keep prices stable, or even reduce them slightly, to ensure their properties qualify for the schemes. This, he argued, would help expand access for more buyers.

Abela also highlighted parallel efforts to increase affordable housing supply. He referenced ongoing projects expected to deliver around 260 apartments priced approximately 30% below market rates. These initiatives, he said, form part of a broader strategy to tackle housing affordability from multiple angles.

Abela stressed that the government must take active measures rather than remain passive in the face of rising housing challenges. While acknowledging concerns about potential price inflation, he reiterated that efforts have been made to mitigate such risks.

He added that the response to the government’s schemes, particularly one in which the state covers 25% of a property’s value, has been largely positive. Under this initiative, single buyers could save up to €65,000 in interest, while couples may save up to €75,000.

“This will make a real difference,” the Prime Minister said, highlighting the government’s aim to help more young people become homeowners.

In response to another question, Abela rejected claims that the Labour Party is being overly populist during the electoral campaign, following criticism from business groups including the Chamber of Commerce and the Chamber of SMEs. He insisted that the party’s proposals are not driven by populism, but by a genuine commitment to improving the lives of families. Abela said the measures announced since the start of the campaign are designed to place families at the centre of policy and to make their daily lives easier and better.

RSS Feed Source: Independent Malta PM Abela defends first-time buyer schemes, highlights measures to prevent inflation