CONSTRAINTS TO AFFORDABLE PRIVATE SECTOR MORTGAGE FINANCE FOR URBAN LOW INCOME HOUSING IN NIGERIA: AN APPRAISAL

Onyinye Vivian Keke, Charles Chukwunwike Egolum, Fidelis I. Emoh

Abstract


In a rapidly changing and urbanizing world, the provision of adequate and affordable housing remains a key priority for all governments as it is no longer only regarded as simply a roof over one's head but also, a reflection of the cultural, social and economic values of a society and one of the best historical evidences of the civilization of a country. Housing is one of those fundamental social variables that determine not only the quality of life and welfare of people but also of places and it is for this reason that the housing sector is described as a barometer for measuring the health or ill-health of a nation. The consideration given to shelter in the hierarchy of needs makes housing problem so unique in the lives of individuals and even governments. In Nigeria, finance systems for urban low income housing provision are generally underdeveloped despite having good policies. This is as a result of poor methods of implementation which often leads to loss of funds by the government and creates constraints to affordable financing in the country. The study appraises these constraining factors and their influence on the affordability of private sector financing for low income housing in the study area. Three hundred and fifty questionnaires (350) were administered to real estate and financial professionals using stratified random sampling and purposive sampling of which 317 were returned representing a response rate of 91%. Data was analyzed using mean scale, one sample T-test, and Pearson correlation analysis. The study reveals that accessibility of developers to long-term mortgage
finance, high interest rates, macroeconomic volatility, lack of proper governance and inter-sectoral coordination are some of the constraints affecting the affordability of low income housing finance and recommends that affordable housing delivery schemes be incorporated into the formulation and implementation of housing policies and programmes for better low income housing provision.

Keywords: Housing, Private Sector, Mortgage Finance, Affordable, Constraints, Nigeria



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