The Minister for Works and Housing, Francis Asenso-Boakye (MP) has revealed that Government is working on a framework that will absorb the cost of land and infrastructural services, which are key components in the provision of decent, secured quality and affordable accommodation for private developers in support of its affordable housing programme. This, the Minister believes, will be pivotal in addressing the supply-side constraints of the housing market.
Speaking at the 2021 Business 24 Real Estate Conference today in Accra, the Minister said the Works and Housing Ministry has since identified each the cost drivers that contribute to the cost of an affordable housing unit and has subsequently mapped out specific strategies with the sole objective of making housing affordable for the large section of the Ghanaian population.
The UN Habitat study reveals that families who pay more than 30 percent of their income for housing are considered cost burdened and may have difficulty affording necessities such as food, clothing, transportation, and medical care.
The Minister explained that for housing to be deemed as affordable, housing cost should not exceed 30% of a household’s income be it for purchase, mortgage, rental or rent-to-own.
With high price of most commercial housing units being attributed to cost of building materials which are mainly imported, the Minister urged industry players to embrace the use of local building materials. He envisaged that developers who wish to partner Government in its Affordable Housing drive will need to incorporate the use of local materials in the construction of any Affordable Housing Projects. Such initiative, he noted, will go a long way to reduce building cost and ensure the provision of affordable accommodation while boosting the local economy.
The Minister further appealed to stakeholders in the housing sector to embrace government’s instituted affordable housing framework and partner with banks and other financial institutions to invest more to wipe out the prevalent housing deficit, adding that “it is only through this that we can reach out to majority of our citizens and positively affect the lives of the larger population”.
The maiden edition of the Real Estate Conference brought together key industry players, professionals, and experts to engage in discussions that seek to match the various challenges of affordable housing development to workable solutions.