Page 15 - Housing & Poverty In Malta With A Focus On The Southern Harbour Region

this having been estimated by Camilleri at roughly LM 22,000. This figure exceeds the LM
18,000 affordability benchmark considerably.

Camilleri also found out that on small-sized properties, small being defined as occupying
less than 40 metres squared of space, a premium of LM 6,000 was applicable. To some
extent, this dispels the myth that smaller property translates proportionately into higher
affordability.

The author then goes on to suggest policy changes. In his opinion, capricious affordability
subsidisation should be done away with. He further suggests that only part of the rent
should be subsidised in order to give an incentive to subsidy recipients to shop around,
negotiate lower rents and utilise land more efficiently.

Reference is also made to the social housing scheme in Germany, which allegedly takes
into consideration a variable referred to as optimal accommodation space serving
households. Thus, one person requires 45 square metres of space, with each additional
person requiring an additional 15 square metres and with the rooms provided excluding
the kitchen being dependent on the number of persons in the household.

Because limited funds call for a distinction between real and capricious housing
affordability problems, Camilleri suggests that the public should be guided into acquiring
affordable housing and that the recipients of housing subsidies should contribute to
society by being assigned ‘voluntary work’ as is done in Canada or to provide a loan rather
than a grant.

The regeneration of housing units in urban cores, where the Housing Authority could
enter into a ‘partnership’ with private developers could also be considered. Any units
generated from this scheme should then be sold partly at commercial rates, and partly
assigned on ‘shared-ownership schemes’. The regeneration of inner city cores, and later
outer ones, could also be candidates for the eventual acquisition of EU funding.

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