GSD urges flexibility on ‘astronomical’ payments for affordable homes
The Gibraltar Government has been accused by GSD MP Daniel Feetham of “creating blocks at the first hurdle” for those allocated houses in Hassan Centenary Terraces.
Mr Feetham is concerned that prices are too high for affordable homes and urged the Government to provide some flexibility when calculating the monthly deposit prices during the construction period.
Mr Feetham took to social media this week and highlighted the “ridiculous” price of these instalments after a constituent raised his concerns with him.
“The problem here is because the properties have much higher prices these monthly payments are astronomical,” Mr Feetham told the Chronicle.
“It is way out of reach for people of moderate means so there ought to be the flexibility because a ‘one size fits all’ solution is not adequate in these circumstances.”
“I would urge the Government to sit down with people and look at their personal circumstances and to tailor those initial repayments to their personal circumstances.”
“Ultimately those people are going to have to obtain a mortgage and it may well be that at those prices they might not even be able to afford them.”
Based on the Government’s monthly instalment rate of 0.665%, Mr Feetham calculated it would cost an individual £750 a month for a property worth £229,000 or £114,500 on a 50/50 basis.
Mr Feetham added: “More needs to be done to make these properties more accessible rather than block people at the first hurdle.”
Another concern is that the prices for these properties are much higher in comparison to other Government-built affordable housing.
“People are concerned they cannot afford the instalments until completion,” Mr Feetham said.
The Government announced applicants for Hassan Centenary Terraces began receiving calls for the allocations of their homes.
The first group that were contacted were those currently living in Government rental properties.