Ministry of Lands, Housing and Urban Development has increased rentals for residential houses under the Department of Housing by an average of 65 percent with effect from April 1 2026.
The ministry has also effected a 30 percent increment for houses under State-owned Malawi Housing Corporation (MHC) from May 1 2026.
Making the announcement through a ministerial statement in Parliament in Lilongwe yesterday, Minister of Lands, Housing and Urban Development Chimwemwe Chipungu attributed the steep increase for Department of Housing units to historically low rental rates he said have made it difficult for government to maintain the properties.
He noted that comparable houses in the private sector cost significantly more.
“The houses are located in low-density areas such as Areas 12, 10 and 11 in Lilongwe and Nyambadwe and Limbe in Blantyre. Current rentals range from K160 000 to K715 000 per month while similar private properties go for between K600 000 and K2.5 million,” said Chipungu.
The minister stressed that the adjustments are not meant to match market rates, but to make rentals economically viable and support sustainable property management.
He also said government will enforce tenancy agreements more strictly, including requiring advance rent payments and taking action against arrears exceeding 30 days.
But Leader of Opposition in Parliament Simplex Chithyola Banda described the increases as exploitative and warned that they will make the houses unaffordable for many Malawians.
He faulted government for implementing the hike at once, instead of adopting a phased approach to cushion tenants already struggling with high taxes.
“It is a hike that will affect many Malawians. Where will they get the money for rentals when they are already burdened by VAT, Paye and other taxes? There is no room to breathe,” said Chithyola Banda.
While acknowledging the need for reforms to maintain public housing, the former minister of Finance said the magnitude of the increase is impractical for the average Malawian.
Government, through the Department of Housing owns and manages 228 houses in Lilongwe and Blantyre while MHC has about 6 400 units nationwide.
