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The Centre for Affordable Housing Finance in Africa (CAHF) pinpoints several key challenges impeding the development of affordable housing in Ghana.
Government to Close Ghana’s 1.8 Million Housing Unit Deficit
The UK Government introduces the Landmark Renters’ Rights Bill, ending ‘No Fault’ evictions.
The Centre for Affordable Housing Finance in Africa (CAHF) has pinpointed several key challenges impeding the development of affordable housing in Ghana.
These challenges include land tenure insecurity, high transaction costs, complex property rights, and weak regulatory oversight due to institutional neglect.
According to CAHF, which aims to promote investment in affordable housing and housing finance across Africa, these issues have made housing finance solutions particularly difficult for urban dwellers in Ghana.
The organization warns that unless the government adopts a more flexible approach, these challenges will persist.
Despite these challenges, there have been notable efforts to address Ghana’s housing deficit. The deficit has decreased by 33 percent, from 2.8 million in 2010 to 1.8 million in 2022, partly due to a real estate boom and a 72 percent increase in residential structures over the same period.
Various organizations and the national bond market, known as the Fixed Income Market (GFIM), have contributed to increasing the housing stock and supporting the affordable housing agenda.
One significant initiative is the National Homeownership Fund (NHF), launched in 2018 under the Decent Homes, Better Life initiative.
This scheme provides mortgages at low interest rates for eligible public workers and civil servants, in partnership with GCB Bank Limited, Stanbic Bank, and Republic Bank. Although the NHF has issued 296 mortgages, the scheme remains in its pilot phase.
Initially, the mortgages were offered at competitive rates, but by 2023, interest rates had risen to 18 percent due to increasing Treasury bill rates. This rise has affected the affordability of housing finance and undermined efforts to provide affordable housing.
In response to the housing deficit, the Ministry of Works and Housing has recently announced a comprehensive plan to address the issue.
With a current shortage of 1.8 million units affecting around 5.4 million Ghanaians, the government has identified seven key priorities to boost housing supply and improve access to affordable housing.
This includes completing stalled projects such as the Saglemi, Koforidua, and Adenta State Housing schemes.
The Adenta project, which was suspended in 2013 due to a court injunction, has recently resumed following favorable court rulings, with efforts now focused on securing private developers to complete these and other projects.
In International News
The UK government has introduced significant changes to the private rental sector through a renters’ rights bill, which ends “no fault” evictions and increases maintenance standards for rented homes.
This bill surpasses the previous Conservative proposal, which aimed to eliminate evictions under Section 21.
The Tory bill lapsed due to the dissolution of parliament before the July general election. The Labour government is now expanding protections for England’s 11 million renters.
Deputy Prime Minister Angela Rayner emphasized the urgency of reforming the rental system to rebalance the relationship between tenants and landlords.
Joycelyn Marigold – Africa Home Building News
