The maximum ceiling has been set at €260,000 for a three-bedroom apartment in St Julian’s while the lowest has been set at €110,000 for a one-bedroom in Fgura.

However, developers could offer to sell the apartments at an even cheaper rate to gain a competitive advantage during the tendering process.

These homes won’t be open to everyone. To qualify, single applicants aged 34 and under must earn no more than €29,000 a year in gross salary, while those aged 35 and over must have an annual income below €33,000. Couples applying together must have a combined gross income of no more than €38,000.

People who already own a property won’t be eligible and applicants will not be allowed to rent out these properties to third parties.

As an anti-speculation measure, they will only be allowed to own the property on a permanent title after 20 years.

Azzopardi said the FAH was set up to help workers who have been priced out of the market.

“We are open to dialogue but we must speak first and foremost in the interest of workers who cannot afford property,” he said. “If we don’t speak on their behalf, then who will?”

“This initiative is a sustainable way to place hundreds of affordable properties on the market in a short span of time.”

Azzopardi dismissed claims by the Malta Developers Association will distort the property market, arguing that there is already an element of distortion in the fact that people who earn average salaries cannot afford a home.

And he made it clear that similar initiatives could follow.

“We didn’t launch a project, we launched a process,” he said.

“We made sure the methods are sustainable, and we’re confident this approach can expand to guarantee that every worker will be able to afford a home.”

Do you agree with this new scheme?