The Government has announced plans to build over 1,600 affordable homes across three sites in Gibraltar. These properties, targeting Gibraltarians on the housing waiting list, are due for completion between the summer of 2019 and the end of 2021.

Construction of the three affordable housing estates will begin with Hassan Centenary Terraces which will be sited on the forthcoming Eastside development. The scheme has been reworked from that previously announced for this site given the evolving plans for the Eastside development as a whole. Coastal protection works along the site are included in the plans. In addition, extensive utility services' infrastructure will be laid to service the development.

The second development, Bob Peliza Mews, will be located at Waterport, on the site of the current Waterport power station which will be decommissioned once the new power station (under construction) opens. It will be on the frontline of the harbour with sea views.

A third new affordable home development is planned for Europort Avenue, nestling between the town centre and the Europort area.

Completion of the first blocks of affordable homes is expected to be in February 2020 with the first phase of Hassan Centenary Terraces and the whole of that estate being completed by the end of 2020. Completion of the estate on Europort Avenue is expected to commence in March 2021. Completion of the first phase of Bob Peliza Mews is expected, subject to the successful and timely commissioning of the new power station, in June 2021 and the second phase in December 2021.

The Chief Minister Fabian Picardo said: "The provision of housing that is affordable is of course an essential part of the strengthening and growth of our nation and has therefore always been a priority for our GSLP/Liberal administration. We have a proven track record and have already delivered in numbers and quality. We are committed to continue to provide for our community and will continue to do so with homes that are affordable and I am delighted to announce the next phase of our forthcoming projects."

The Minister for Housing and Equality Samantha Sacramento said: "I have seen the damage that historic lack of housing causes in our community as well as the joy of seeing families move into new and high quality homes in the last couple of years. I am glad to be part of a Government that has addressed this issue in a way that is unprecedented. In addition, of course, the natural consequence of the allocation procedure will be that there will be a substantial release of Government rental housing stock and this will have a positive effect on the waiting lists for rental housing."

None of these properties will be available for those not eligible for the Government’s social housing programme. (The eligibility criteria and priority of allocation is available on the government website.) Hence there will not be any off-plan launch into the open market. There will however, be an impact on the open market in the medium term, probably threefold.

Firstly, those who are eligible, may not have to move into Spain in order to be able to afford their own property. This has to be good for the local economy which in itself, is a driver for the demand on properties in the open market as more skilled workers seek existing property in which to live. Secondly, construction prices are going to be pushed up as a result of public and private developers competing for competent contractors who have the necessary skills and scale to build such developments. This may have an impact on prices. Thirdly, the current squeeze at the lower end of the property price spectrum, which has caused significant property price inflation (with the knock on effect to rental prices) may be eased a little if some demand can be diverted to government schemes. That has to be good for Gibraltar PLC.

It’s a huge task, but the pent up demand for property in Gibraltar should ensure success.