Action for Housing unconvinced after CM defends private landlord refurbishing Govt flats

Action for Housing (AFH) has criticised the Chief Minister’s defence of a Government decision allowing a landlord to refurbish publicly owned rental stock to rehouse some of his private tenants, adding it prioritised some people on the housing list ahead of others who had been waiting for longer.

Under the agreement, the landlord would refurbish the Government properties and his tenants - who were on the housing list - would be rehoused, freeing up the private building for investment on affordable private-sector rentals.

Speaking on GBC’s Viewpoint last week, Chief Minister Fabian Picardo defended the move, which he said had not been hidden and was important as a way of encouraging investment in Gibraltar.

“This is something that was done in order to release the investment in Gibraltar, something we all want to see, because we want to see Gibraltar’s GDP increase,” Mr Picardo said.

He said the investment by a local landlord in local property would provide affordable rentals in the private sector, adding that the tenants in question were “very high up” on the social housing waiting list and were “already in the process of being offered tenancies”.

“And what [Housing Minister] Pat [Orfila] was able to do was to persuade the landlord, who was going to take the benefit of the taxpayer rehousing those individuals within months, that actually if they wanted them rehoused quicker, he had to spend his money to refurbish the property, so that the taxpayer didn’t have to do that.”

“I applaud what Pat did, we live in a commercial environment where money is tight,” he added.

“We have to deliver to the taxpayer and not just to those who are on the housing waiting list.”

“If we can deliver to both at the same time and release investment into the old town and into Gibraltar which is good for the GDP, I think what Pat has managed to do is actually square the circle in a very positive forward-looking and commercial way.”

“I don’t just support it, I applaud it, I commend her for it.”

“And I wish that we could do it in many instances so that we deliver better value for the taxpayer, quicker delivery to those on the housing waiting list, and release investment into Gibraltar.”

But Action for Housing, which first raised concerns last week ahead of Mr Picardo’s comments on Viewpoint, remained unconvinced.

In a statement on Monday in response to Mr Picardo’s comments on GBC, the group accused the Government of allowing a private landlord to increase profit margins in a move that brought into question the integrity of the Government’s housing allocation policies.

The group said it “strongly condemns” Mr Picardo’s support for the decision and called for it to be revoked immediately, to instead refocus efforts on fairness and transparency.

“As far as we are aware, the tenants were not at the top of the waiting list and had no exceptional circumstances to take a flat ahead of others who are patiently and desperately waiting in front of them on the waiting list,” AFH said in a statement.

Referring to some of the people “contained within this specific agreement”, AFH said Mr Picardo was inaccurate in saying they were “months away” from an allocation.

“A lucky couple contained within this specific arrangement applied for housing in January 2011,” the group said.

“Action for Housing took on their case in December 2018, at which time they were 35th on the waiting list.”

“They only moved up 16 positions over the past five years and eleven months, standing at 19th on the list in October 2024.”

“Over the last two years they have seen negligible movement, fluctuating between positions 17 and 10, indicating a stagnant process.”

“To suggest, as the Chief Minister has, that this couple was 'months away' from an allocation is blatantly inaccurate and demonstrates a disconnect from the reality faced by those enduring years of waiting in the housing lists.”

The group said the properties in question should have been refurbished by the Government at its expense and allocated in accordance with the relevant waiting lists, policies, and procedures.

“This landlord, who has purportedly made millions from the sale of his property (whole building), was effectively relieved of his legal and financial responsibilities under the Housing Act to rehouse his tenants—a requirement that other private landlords have met at their own sole expense,” the statement added.

AFH also said the arrangement was “unfair” and raised serious questions about Gibraltar’s housing allocation policies.

The group said the move undermined public confidence in a “fair and transparent” system and may “open the floodgates” for other private landlords to strike similar deals with the Government.

“The Housing Department claims to adhere strictly to a chronological waiting list, except in cases of exceptional need,” the group added.

“This case, however, did not meet these criteria, yet the landlord’s tenants were prioritised ahead of many families still waiting for homes.”

“Furthermore, it is deeply concerning that the flats in question were left vacant and dilapidated for long periods of time, and we question why the Government allowed this arrangement to happen rather than refurbishing them or allocating them to eligible tenants through the Government’s rent and repair scheme.”

“This failure to manage and utilise housing resources equitably is unacceptable.”