The government in the coming years will adopt the site and services scheme strategy in some districts as part of efforts to ensure that houses delivered by developers are affordable to the average Ghanaian. The Finance Minister, Ken Ofori-Atta, disclosed this during the presentation of the 2022 Budget Statement and Economic Policy in Parliament on Wednesday, November 17, 2021.
He said as part of government’s efforts on the supply side of the housing chain, tax rebatements as well as free lands will be provided to the developers by traditional authorities and the local assemblies for purposes of delivering housing.
“The Government will initiate a programme to subsidise the cost of horizontal (site and services) development in selected areas. On the supply side, Traditional Authorities and Districts will provide: land to developers; and tax incentives and exemptions. On the demand side, Government is establishing a National Homeownership Fund to support mortgage schemes and REITs while also promoting Rent-to-Own Schemes in the country,” says the minister.
The Hon. Ofori-Atta further revealed that government has commenced engagements with Participating Financial Institutions (PFIs) with the ultimate goal of promoting residential rent-to-own schemes as well as supporting the development of a private sector mortgage refinancing institution.
He added, “with the support of the “Obaatan Pa” programme, the National Homeownership Fund (NHF) is facilitating the use of innovative products to tap into pension funds and other long-term funds to support homeownership in Ghana.”
The Minister for Works and Housing, Hon. Francis Asenso-Boakye, during his vetting earlier this year, hinted that the government was considering the site and services scheme to ensure houses are affordable for Ghanaians.
Source: Mohammed Bomanso Issah(Real Estate Times Africa)