First-time home buyers will be entitled to an annual grant of €1,000 per year for ten years, irrespective of their income, if Labour is re-elected to government, Robert Abela said on Wednesday.

"There will be no means-testing. Every first-time home buyer will be eligible if they buy their home against a bank loan," Abela said in a news conference during which he elaborated on a promise made on Sunday.

"The government will pay the approximate equivalent of a month's loan each year for ten years," he said. 

The Labour Party chose to announce one of its most ambitious promises a few hours after the election was announced on Sunday, pledging to give €10,000 over 10 years to first-time buyers, starting retroactively for contracts signed from January 1, 2022.

The promise will cost €3.8m for the first year and €57 million throughout the entire term, Abela explained.

He brushed off concerns that the initiative could inflate property prices and said this was only one of several other incentives for young home buyers.

"Let's take a hypothetical first-time buyer couple who plans on buying a property in an urban conservation area with a loan. They will be fully exempt from paying tax on the property and will be refunded all VAT on the first €300,000 of refurbishment works," he explained.

"If the property is in Malta, they will get an extra cash grant of €15,000, and if it is in Gozo, the cash grant doubles to €30,000. On top of that, the government will now be paying a month's worth of their loan each year for ten years."

"This government is eager to keep giving people more and more," he said.

Wednesday's press conference served to introduce voters to two of Labour's newest candidates - Naomi Cachia (districts 7 and 12) and Cressida Galea (districts 1 and 8).

They said they found 'their natural home' in the Labour Party because it has their interests and needs at heart.

Abela said young people know the government is with them and urged them to dream on and realise their dreams.

"Have confidence and chase your dreams. Be ambitious and strive to turn your aspirations into reality," he said.

"You will find us there with you, every step of the way."