The Ghana Real Estate Developers Association (GREDA), says the challenges posed by the outbreak of COVID-19 should encourage government to review the Home Mortgage Finance Act, 2008, Act 770, to expand the country’s housing units.
The Act regulates home mortgage financing and related matters, but GREDA wants a review to remove bottlenecks in the mortgage sector.
GREDA has over the years been calling for a cheaper source of funding to enable developers tackle Ghana’s housing deficit.
Speaking to Citi Business News after GREDA donated one hundred thousand cedis to the National Covid-19 Trust Fund, the President of GREDA, Ebo Bonful, said government must take another look at the Act to bring some relief to Ghanaians.ADVERTISEMENT
“I think that for us we have always held the view as a council that government will review the Home Mortgage Finance Act, and we have sent a detailed proposal to government. We are hoping in the coming days or In the coming months you know when everything becomes a bit clear, that government will be able to look into the matter and deal with it expeditiously to make sure that our industry can really come back to life the way and manner it is supposed to,” he said.
The economic impact of the coronavirus pandemic has been huge, hitting major sectors of the economy.
Already, government has announced that it has the capacity to cover the rent of persons who may face eviction for not being able to meet their rent obligations.
“If someone should push that if people have no place to live as a direct result of the COVID-19 challenges should have their rent paid, we should be able to absorb it. We have the financial space,” Mr. Atta Akyea, the Minister for Works and Housing stated at a press briefing in Accra.
Housing in Ghana
Earlier this year, the Ghana Real Estate Development Association (GREDA), stated that a proposal to build 20,000 houses has been submitted to the President Akufo-Addo and is awaiting response.
The Executive Director of GREDA, Sammy Amegayibor, indicated that President Akufo-Addo last year April, asked GREDA to develop a proposal to build 20,000 housing unit.
However, the GREDA boss noted that they are yet to receive any feedback from the President.
Ghana’s housing deficit stands at 1.7 million units, but industry players believe the deficit could be more as the country’s population increases.