Long wait for decent,Affordable housing
Majority of Malawians will have to wait longer to afford ta decent house as the high cost of construction continues to prevent equitable access to adequate housing for people living in informal settlements, it has emerged.
With 8.7 percent of Malawi’s population or 1.7 million people living in informal settlements in Malawi, hopes of improving access to public services, sanitation and housing quality, are but a far-fetched dream.
This is according to findings of a study by Habitat for Humanity Malawi and Centre for Social Concern, through the Home Equals Campaign, which is seeking policy changes in Malawi to increase access to adequate housing for people living in informal settlements.
According to the findings, assuming that the lowest paid civil servant saves 30 percent from his monthly budget to construct a house, it will take about 23.3 years using research study’s cost of K12.6 million.
However, considering that the cost of living for households of six people is at K503 876 as at February 2024, as reported by CfSC under Basic Needs Basket, it is likely that households may prioritise other needs, and sometimes sacrificing housing savings and maintenance.
Reads the study in part: “On average, residents allocate 15 to 30 percent of their monthly budget to construction materials. Fluctuations in material costs can severely impact their ability to access construction materials and improve their dwellings.”
The study further said that ideally it will take 28 years for the lowest paid civil servant to build a decent three-bedroom house in Mzuzu, 26 years for Blantyre, 23 years for Zomba, 22 years for Lilongwe and 20 years for Karonga and Mangochi.
As of April 1 2024, government raised salaries by 12 percent for civil servants with the lowest paid civil servant on Grade R1 currently earning an average of K1.81 million per year.
Meanwhile, data shows that the unit price of cement (Duracrete/ Dangote/ Akshar / Njati of -32.5N) is high in Zomba selling at K22 800 and lower in Mzuzu selling at K19 500 per bag while the selling price of two metre by six metres softwood timber of 4.8 metres (m) is selling at K17 000 each in Lilongwe compared to other districts such as Karonga, which is selling at K 9 000 each.
On the other hand, the unit price for pre-painted iron sheets 28 gauge IBR iron sheets of 3.85m length and one metre width is selling at K52 155 in Mzuzu, which is way higher than other districts, according to the study.
“Government bodies should enact and enforce policies that promote affordable housing solutions, including subsidies for low-income earners, streamlined approval processes for housing projects, and incentives for private sector involvement in affordable housing developments,” reads the study in its recommendations.
Lack of access to housing finance has remained a major obstacle to home ownership in Malawi, a country which has 59 percent of its houses classified as sub-standard.
According to the Africa Housing Finance Yearbook 2022 report, access to mortgages, a long-term loan for buying a house, is affected by the increase in the interest rates, now hovering at around 33.5 percent.
Consumers Association of Malawi executive director John Kapito said more low-income wage earners are building sub-standard houses due to lack of affordable housing finance.
On his part, Association of Real Estate Agents in Malawi president Ken Msonda observed that it is unfortunate that Malawi government does not have a policy or scheme in place for the middle or lower class citizens to own a house.
Experts say the Housing Policy of 2000 does not adequately address issues arising from other national policies such as the National Land Policy (2002), among others.
