Workers will be able to use their tier-2, tier-3 pension funds for mortgage soon - Housing Minister

Ghana’s Housing minister, Francis Asenso-Boakye says the government is working on a plan that will allow workers to “use their tier-2 and tier-3 pension funds, to support their mortgage, especially in the area of initial deposit”.

According to statistics, Ghana has a housing deficit of more than two million units

According to the former Deputy Chief of Staff, the New Patriotic Party (NPP) government wants to provide affordable housing for Ghanaian workers

He opined that to achieve this, his ministry “has developed a framework to drive a new affordable housing programme”.

“This framework intends to use an appropriate mix of public and private sector investments that meet the needs and the financial capacity of the average Ghanaian,” he said at the launch of the Business 24 Real Estate Conference 2021 in Accra on Tuesday, October 19, 2021.

Mr. Asenso-Boakye also noted that his ministry has considered all the components that determine the cost of a building which contribute to the cost of an affordable housing unit and “has mapped out specific strategies targeted at each of these with the sole objective of making housing affordable for the large section of the population”.

He said the focus is to look at the entire ecosystem when it comes to housing delivery:

1. Land through the repossession of public land and engagement with traditional leaders emphasising transportation linkages to these lands and taking advantage of the infrastructural services available.

2. Provision of infrastructure through dedicated financing and synergies with other infrastructural sectors.

3. Local building materials and their impact on housing cost

4. Planning and design through the establishment of space standards to benefit from economies of scale and avoid wastage

5. And sustainable and cheaper means of construction finance as well as long-term mortgage financing

“Through this, the government commits to reduce up to 40 per cent of the construction cost through the provision of land, infrastructural services and some tax incentives and exemptions in support of the affordable housing programme,” the Minister stated.

He added: “This, we believe, will be pivotal in addressing the supply side constraints of the housing market”.

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