Maltese families relocated to Gozo through social housing

The Maltese government has initiated a significant relocation programme, moving families from mainland Malta to Gozo, using private apartments leased for social housing purposes. This move involves dozens of apartments owned by prominent developer Joseph Portelli and his associates. These apartments, rented by the government, have become the focus of public debate due to the displacement of Maltese families and the financial scale of the lease agreements.

Financial records reviewed by The Shift indicate that Excel Housing Ltd, a company established only last year, rented five separate apartment blocks to the Housing Authority in 2024. Of these, four are located in Gozo, while one is in Gzira.

The lease agreements span ten years, with annual rental payments per apartment ranging from €3,250 to €9,417. This arrangement implies that over the coming decade, Portelli and his associates will receive millions of euros from public funds for more than 100 apartments intended for social housing.

Excel Housing Ltd is co-owned by Joseph Portelli, Mark Agius (commonly known as Ta’ Dirjanu), and Daniel Refalo. The company’s portfolio now includes over 100 apartments leased to the government for the Housing Authority to use as social housing.

Low demand for social housing in Gozo

Historically, Gozo has experienced relatively low demand for social housing compared to mainland Malta. Yet, the sudden availability of these apartments prompted the government to allocate them to Maltese families waiting for social housing, effectively relocating them permanently to Gozo.

Since the local population in Gozo did not require this level of social housing, the government faced the challenge of utilising the newly leased flats. Consequently, families from Malta on the Housing Authority’s waiting list were offered the opportunity to move to Gozo, with limited options for alternative accommodation.

During a parliamentary session, PN Housing spokesperson Ivan Bartolo questioned the government regarding the number of Maltese families relocated to Gozo. Minister Roderick Galdes confirmed that 85 Maltese families had been allocated apartments in Gozo. Of these, only 28 flats were allocated to Gozitan families.

Public criticism and complaints

The relocation initiative has sparked complaints from affected families, who feel displaced from their home island. Sources indicate that Maltese couples who accepted the relocation offer did so reluctantly, often viewing it as the only practical option to secure housing rather than risk losing their place on the waiting list.

“Many families had no real choice,” one source explained. “They realized it was better to accept a flat in Gozo than to return to the end of the long waiting list and start the process all over again.”

The allocation of government-leased apartments in Gozo, while meeting immediate housing needs, has highlighted tensions between policy decisions and public expectations. Critics argue that displacing Maltese families to Gozo could undermine community cohesion and raises questions about the prioritisation of local versus non-local residents in social housing programmes.

Details of the lease agreements

Joseph Portelli’s agreement with the Housing Authority includes approximately 80 apartments and 80 garages in Gozo, spread across Sannat, San Lawrenz, Xaghra, and Rabat. In addition, 32 apartments and 32 garages in Gzira are included in the lease.

The annual rental costs, ranging from €3,250 to €9,417 per apartment, reflect a significant long-term financial commitment from the government. Over the ten-year period, this arrangement will amount to a multi-million euro expenditure, raising questions about the sustainability and cost-effectiveness of relying on private rentals to meet social housing needs.

Excel Housing Ltd’s recent establishment, combined with its ownership structure, has also attracted attention. Joseph Portelli is widely recognised for his substantial political donations and close ties to the Labour Party. While these connections are legal, they contribute to public scrutiny over the company’s involvement in government housing contracts.

Broader implications for social housing policy

The Gozo relocation programme underscores several broader issues within Malta’s social housing framework. Firstly, it highlights the persistent shortage of affordable housing on the main island, which has necessitated the use of private sector apartments to accommodate families.

Secondly, the move exposes the challenges of balancing housing demand with geographic preferences. Families who have lived their entire lives in Malta face the practical and emotional difficulties of relocating to Gozo, an island with a smaller population, different labour market dynamics, and distinct community networks.

Lastly, the arrangement raises questions about transparency and the criteria used to select private contractors for government housing projects. While Portelli’s company has legally supplied apartments under formal agreements, the concentration of government contracts with a single developer can give rise to perceptions of preferential treatment, even in the absence of wrongdoing.

Ministerial response and parliamentary oversight

Minister Roderick Galdes has defended the initiative, emphasising the urgency of providing social housing to families in need. “The government had to act swiftly to ensure that families on the waiting list received accommodation,” Galdes stated in Parliament.

Nonetheless, opposition figures, including Ivan Bartolo, have called for greater oversight of the process, arguing that decisions must consider both local residents’ needs and the financial implications for taxpayers. Parliamentary debate continues over whether the government should prioritise the development of new public housing in Malta or continue relying on long-term leases of private apartments.

Economic impact and long-term considerations

The financial scale of the leases suggests that private developers like Portelli stand to benefit substantially. With over 100 apartments rented for a decade, the total government expenditure could reach tens of millions of euros. Critics argue that this approach may offer short-term solutions to housing shortages but could be less cost-effective than investing in new public housing infrastructure.

From an economic perspective, the arrangement does have potential benefits. It allows the government to provide immediate housing without the delays associated with construction projects. Additionally, it generates revenue for private developers, stimulating investment in the housing market. However, careful evaluation is required to ensure that long-term public spending remains justified and sustainable.

Social and community impact

Beyond the economic and logistical dimensions, the relocation of Maltese families to Gozo has social consequences. Families face adjustments related to employment, schooling, and community integration. Local residents in Gozo have also expressed mixed reactions, with some welcoming the increase in population and others concerned about the strain on local services.

The government has pledged support for relocated families, including assistance with schooling and local integration. Yet, the situation highlights the need for more comprehensive planning when implementing housing policies that affect multiple islands with distinct demographics.

Transparency and accountability in housing contracts

The case of Excel Housing Ltd underscores the importance of transparency in public-private housing contracts. Independent oversight and clear criteria for awarding leases are essential to maintain public trust. While there is no suggestion of legal wrongdoing in this case, the perception of close political connections can influence public opinion and invites calls for stricter accountability measures.

Looking ahead

As the Gozo relocation programme continues, the government faces ongoing scrutiny from opposition parties, affected families, and housing policy experts. Future considerations may include expanding public housing construction on Malta, reevaluating the allocation of leased apartments, and strengthening oversight mechanisms to prevent potential conflicts of interest.

The situation also serves as a reminder of the delicate balance governments must maintain between immediate social needs and the responsible use of public funds, particularly when private developers are involved.

Conclusion

The relocation of Maltese families to Gozo through leased private apartments highlights both the challenges and complexities of Malta’s social housing system. While the government’s programme addresses an immediate need for housing, it also raises questions about long-term planning, transparency, and the equitable distribution of resources between Maltese and Gozitan residents. The involvement of private developers, particularly those with political connections, underscores the importance of rigorous oversight to ensure public trust and accountability.

Ultimately, the success of the initiative will depend not only on the provision of adequate housing but also on the government’s ability to balance economic considerations, social impact, and community cohesion. As Malta continues to navigate its housing challenges, careful planning, clear communication, and equitable policies will be essential to meet the needs of all citizens while maintaining public confidence in social housing programmes.

FAQs

How many Maltese families have been relocated to Gozo for social housing?
A total of 85 Maltese families have been allocated apartments in Gozo under the Housing Authority programme.

Are Gozitan families also receiving apartments in this programme?
Yes, but only 28 flats were allocated to local Gozitan families.

Who owns the apartments leased to the government?
The apartments are owned by Excel Housing Ltd, co-owned by Joseph Portelli, Mark Agius, and Daniel Refalo.

How long are the lease agreements for?
The government has signed ten-year lease agreements for the apartments.

What is the annual rent paid per apartment?
The rent ranges from €3,250 to €9,417 per apartment per year.

Why are Maltese families being moved to Gozo?
Due to low local demand in Gozo, the government allocated available apartments to Maltese families to meet social housing needs.

Is there public criticism of this relocation programme?
Yes, some families and opposition figures have criticized the displacement of Maltese families to Gozo.

Does Joseph Portelli have political connections?
Yes, he is known for his donations and close ties to the Labour Party.

What are the potential economic impacts of this lease programme?
The government will spend millions on long-term leases, providing immediate housing but raising concerns about cost-effectiveness.

Will the government continue using private apartments for social housing?
The current arrangement continues, but debates remain about future reliance on private rentals versus public housing construction.