Foreign experience of housing associations : how can Malta benefit?

Abstract

The recent half a decade has shown that in terms of housing Malta is at the crossroads. With the economic growth that Malta is currently experiencing we are witnessing a rising demand for residential dwellings that private and public sectors cannot satisfy. As a consequence, there is a rapid growth of prices on residential rent. Considering that housing is on the top [or rather, bottom] of the Maslow's Hierarchy of Human Needs and is one of the basic human rights, this is a concerning trend. If not attended to, it may lead to the growth of deprivation, social stagnation and economic downturn. This is where the ‘Third Sector’ comes in. A term which describes an amalgamation of various voluntary enterprises that sit in between the purely private profit-making initiatives and directly-controlled-by-government projects. Third Sector has an almost century-long history in Western Europe, but is almost a complete novelty in Malta. Of particular interest [and the focus of this paper] is the concept of ‘housing associations’ which exists in various forms in some European states. This paper is meant to analyse the legal experiences that foreign jurisdictions had in regards to using housing associations as a tool of public policy to provide housing to those in need as well as to compete on their own in the private real estate sector. English and Dutch Housing Associations will be discussed; where they have succeeded and where they have faced obstacles. Some brief attention will also be given to other forms of housing associations in Europe. The legal analysis in this paper takes on a top-down approach. The paper will look into how the law was used as an instrument of housing policy, and the results that ensued. The term paper will conclude on whether creating a legal framework for housing associations could be a viable solution for the government to provide some alleviation to the current housing issues in Malta.