SoNA2018: 'I'll make housing affordable' – Akufo-Addo

President Nana Addo Dankwa Akufo-Addo has said his government has begun the “difficult” process of making housing affordable for Ghanaians.

The concept of affordable housing was introduced in 2005 by the then-New Patriotic Party (NPP) government led by President John Agyekum Kufuor. It was part of interventions for the housing sector aimed at providing accommodation for low- to middle-income earners who were mostly government employees.

The National Democratic Congress (NDC) also came into power to continue with its own version of affordable housing but the scheme has failed over the years to target the appropriate segments of the markets and the housing deficit in the country, according to statistics, continues to increase; currently estimated at over 1.7 million housing units.

Housing units which are being described as affordable are going for $29,000 for a two-bedroom unit and $57,000 for a three-bedroom.

To make housing affordable, Nana Akufo-Addo, delivering his second State of the Nations Address in parliament on Thursday, 8 February 2018, said: “Government, last year, abolished the 5 per cent VAT/NHIL on real estate sales, and continues to create a conducive environment that is reducing interest rates on mortgage loans.”

Nana Akufo-Addo also disclosed that discussions are also ongoing between the Pensions Regulatory Authority and the banks to underwrite an effective mortgage system.

This, according to him, will facilitate access to housing for the ordinary Ghanaian.

He further assured that government will continue to create the enabling environment that will promote private sector investment in cheaper housing for the people.