Separated over-55s earning up to €34,900 to qualify for rent support

Over 55-year-olds who have separated from their partners will now be able to tap into additional Housing Authority rent subsidy benefits, the government said.

And those who have separated and are 40 or older will be eligible for further assistance if they want to buy their matrimonial home.

On Thursday morning, housing junior minister Andy Ellul announced the expansion of three schemes: Nikru biex Nassistu (renting to help), the Housing Benefit Scheme and Equity Sharing.

The changes mainly aim to target seperated people who might be too old to be eligible for a large enough loan for a property.

Economist Brian Micallef, who worked on the schemes' expansion said the number of seperated people who are looking for a place to live and are seeking the government's help has increased significantly. 

What is the Nikru Biex Nassistu scheme?

The Nikru biex Nassistu scheme sees the Housing Authority leasing private property to then use as social accommodation. The government has revised the rates it pays to homeowners upwards to increase its stock by about 500 properties.

Ellul said the government will pay owners just under the median commercial rate. The junior minister said the deal can still make commercial sense for landlords, as their income from the authority’s rent will be tax-free, paid in advance and stable.

Currently, the government spends around €10 million annually on the scheme. That bill will increase by €5.2 million.

Who is eligible for the new rent subsidy?

The scheme offers rent subsidies for people earning below a certain threshold. While the current categories – single, parent, couple, and couples with children – will remain in place, the government is also treating separated people over 55 years old as a new category.

Separated over-55-year-olds can earn up to €34,900 a year and still be eligible, and they can receive up to €6,000 a year in rent assistance, up from €4,200.

Who can use the 'equity sharing scheme'?

Equity sharing allows people to jointly buy a property that costs up to €250,000, with the Housing Authority paying out up to €100,000. Until now, the scheme was only open to those aged 30 or older, but will now expand to include anyone over 25.

Those aged between 25 and 29 cannot earn more than €20,000 to apply.

The scheme also aims to directly target separated people who want to buy their matrimonial home. If they are over 40, they can use the scheme if the property they had with their partner costs up to €350,000.