Housing demand continues to outstrip supply, Orfila tells Parliament

The Minister for Housing, Pat Orfila, said the department continues to receive more housing applications than it can supply, describing the pressure on the housing system as one of the Government's greatest challenges.

Delivering her Budget address in Parliament, Ms Orfila said the Housing Department received 494 applications between June 1, 2025 and April 30, 2026.

Over the past two-and-a-half years, she said, there had been 1,098 new applications.

The Housing Department has now separated applicants seeking Government rental accommodation from those wishing to purchase affordable homes to better understand demand.

The figures showed that 597 applicants wanted Government rental housing, while 501 wished to buy affordable homes.

"I am not making excuses here I am merely telling the truth of the Housing situation as it stands today," Ms Orfila said.

"We are receiving more housing applications than what we are giving out."

"Madam Speaker it is like being in a boat with a hole at the bottom. No matter how many buckets full of water we chuck over the side the water keeps coming in."

"And that Madam Speaker is the crude reality of the Housing waiting list."

She said the department continued allocating homes and introducing new schemes to maximise existing housing stock, but acknowledged that applications continued to arrive daily.

Ms Orfila said changes introduced through the new Housing Allocation Scheme, together with the UK/EU treaty agreement, had strengthened protections for Gibraltar's housing stock.

Under the revised eligibility rules, applicants must now prove 15 years of residency, five years longer than previously required, by demonstrating they have lived and worked in Gibraltar and contributed through tax, social insurance or other evidence of residence.

"This has been very welcomed Madam Speaker because this protects our Housing stock for our people," she said.

"It is very important that we look after our people first and foremost and all others can come next."

She also highlighted improvements in the department's financial performance and the collection of arrears.

Direct Debit collections increased from £935,577 through 10,266 transactions in the previous reporting period to more than £1.6m from 15,622 transactions, representing an increase of over £681,000 and more than 5,300 additional payments.

Between April 1, 2025 and April 30, 2026, the department collected just over £6.1m in rental income and related payments, an increase of £650,015 compared with the previous financial period.

A total of 63,259 payments were processed during the year, up from 59,940 previously.

Online payments also rose from £367,611 to £432,574, while card payments at housing counters increased from £155,430 to £250,733.

Ms Orfila said the figures showed tenants were increasingly embracing digital payment methods while reducing queues at housing offices.

The recovery of outstanding rent arrears remained "the Achillis heal of this department", she said.

Between June 2025 and April 2026, officers recovered £191,332 in outstanding debt, with a further £157,270 recovered through formal repayment agreements, bringing the total recovered to around £348,000.

Housing officers held 129 scheduled arrears meetings, with tenants attending 99 of them. A total of 72 repayment agreements were reached.

"Our objective is not simply to collect money but to strike the correct balance between protecting public funds and supporting tenants who may be experiencing genuine financial difficulties," Ms Orfila said.

She also outlined progress on the installation of CCTV systems across Government housing estates to tackle vandalism and anti-social behaviour.

Glacis Estate is nearing completion, with cameras installed and network infrastructure being configured, while work is under way at Laguna Estate.

Further installations are planned at Moorish Castle, Varyl Begg Estate and Mid Harbours.

In total, 20 cameras will be installed at Glacis Estate, 19 at Laguna Estate, 18 at Varyl Begg Estate, 18 at Moorish Castle, 12 at Mid Harbours and a further 10 in the Mid Harbours garage area.

"My priority is to make our tenants feel safe within their estates," Ms Orfila said.

"It is something which was long overdue and which the community has welcomed with open arms."

Ms Orfila also highlighted the performance of the University of Gibraltar during the past academic year as the minister with responsibility over the university.

She said 560 local students and 110 international students had studied at the university, while tuition fee income rose to £2.77m.

Student outcomes also remained strong, with 90% of graduates entering employment or further study within months of completing their courses, while 93% said the knowledge and skills gained supported their career aspirations.

The university reported progression rates of 92%, retention rates of 95% and completion rates of 96%.

The institution also trained 11 new Gibraltarian primary and secondary teachers, while a further 16 practising teachers completed a Masters in Education programme.

Since 2023, the university has secured around £500,000 in competitive research funding, largely through the Darwin Plus scheme, supporting projects in marine ecosystems, biodiversity, macaque monitoring and natural resource management.

The School of Marine and Environmental Sciences also secured a further £50,000 in Darwin Plus funding for its coral nursery project.

The university marked its 10th anniversary this year with a record graduating class of 119 students, including its first graduates in BSc Computing, Masters in Contemporary Healthcare and MBA Gaming programmes, together with four doctoral graduates.