A set of old houses which had fallen into disrepair have been transformed as part of a drive to ease the shortage of affordable homes in Bermuda.

The four buildings — originally homes for officers of the British Army — have been turned into 16 quality two-bedroom apartments aimed at people who are struggling to get on the property ladder.

Housing Minister David Burch yesterday performed the traditional roof wetting ceremony to celebrate the completion of the $4.5 million Anchorage Villas project, in St. George’s.

Apartments will be available for purchase under the Government’s “life interest” scheme, which aims to target people who do not want to leave their property in a will.

Buyers can pay a relatively cheap price for an apartment, with the property being returned to Bermuda Housing Corporation (BHC) when they die.

The price of the property is based on a sliding scale, taking into account the buyer’s age and mortality rates.

Under the scheme, people aged 65 can buy an apartment for about $300,000, although the price is higher for younger househunters.

Apartments will also be available for rent for up to $2,500 per month.

Speaking at a press conference ahead of the roof wetting, Mr. Burch said: “We believe that every Bermudian should expect to have a safe and adequate place in which to live.

“And we are proactively making strides to fulfil this mandate. Making homes like Anchorage Villas available truly represents the hand-up that honest, hard-working Bermudians need and deserve.”

The last set of tenants moved out of the homes in 2004 after BHC officials said they needed major work.

Yesterday, Mr. Burch said the property had suffered serious deterioration but the Government had decided to refurbish it rather than demolish it and rebuild.

The refurbishment programme took 18 months — five months longer than expected due to problems with the construction of a retaining wall.

The homes, which each have two baths and range in size from 1,360 square feet to 1,485 square feet, offer a glorious view of the North Channel near Tobacco Bay.

Mr. Burch said the scheme was one of many initiatives aimed at creating more affordable homes.

He said: “As Minister responsible for housing, nothing gives me greater pleasure than to preside over the delivery of a housing project.

“Our mission is to ensure that the BHC is known as the premier helping agency in Bermuda in providing housing for all Bermudians.

“The Government is resolute in its commitment to address our housing needs and the completion of the Anchorage Villas is yet another step in achieving that aim.”

Mr. Burch added that the homes’ previous tenants — who had complained they were thrown out too close to Christmas two years ago — have since been housed somewhere else.

The homes will be offered to people on the BHC waiting list, he said.

After the ceremony, Mr. Burch said he believed the life interest scheme would benefit house buyers as well as the BHC.

He explained: “You pay a cheaper price because you are only having the house for the duration of your life. It also means the BHC are not selling off all their property forever. It is a novel idea for Bermuda.”

St. George’s MP Dame Jennifer Smith welcomed the development. She said: “I’m extremely pleased to see the culmination of this project. It returns the buildings to their original standards.

“I look forward to them being used by people from St. George’s, or people with a St. George’s connection. This scheme has re-invigorated this part of town.”

Maj. Barrett Dill, a consultant with BHC, said: “I think it’s a magnificent project. It is a vast improvement on what was here before.

“They have a wonderful view of the North Channel. BHC has already had many interested people in this scheme.”

The Government has recently reiterated its aim to create “safe and adequate” homes for people and claims 286 units are currently under contract, with more to come.

Affordable housing schemes in the pipeline include a development at Southside, in St. David’s, in which Trinity Construction plans to build 18 three-bedroom and 36 two-bedroom homes which can sell between $450,000 and $500,000 each.

The Bermuda Land Development Company is hoping to sell land to Trinity for $3.8 million as part of the deal.

The 110-unit Harbour View Village lottery-winner project is in progress, while numbers are further swelled by the 96-unit Loughlands scheme and smaller initiatives at Morgan’s Point and Beacon Hill in Somerset.

A further 100 affordable rental units are planned on Ireland Island.

Members of the public are invited to an open house at Anchorage Villas tomorrow from 10 a.m. to 2 p.m.