Tenants of Malawi Housing Corporation (MHC) houses yesterday met Minister of Lands, Housing and Urban Development Chimwemwe Chipungu to protest a 30 percent rental hike to roll out on May 1 this year.
They submitted during the meeting in Blantyre that the adjustments are excessive and unjustified because most of the houses are in deteriorating condition.
Speaking on behalf of the tenants, Goodnews Mphande described the hike as disproportionate, particularly in light of the poor state of many MHC houses.
“Considering these factors, a 30 percent or 65 percent upward adjustment is too high. In previous years, increments were around 10 percent, which was more reasonable. Government should be considerate,” he said.
The tenants also raised concern over alleged lack of transparency in the disposal of MHC houses with a Mrs. Kubwalo questioning the criteria used to sell houses.
She said long-serving tenants are often bypassed in favour of politically connected individuals.
In response to the concerns, the minister justified the government’s decision, citing rising costs of construction and maintenance materials as a key factor necessitating the adjustments.
Chipungu said the disparity between MHC rentals and prevailing private market rates further justifies the increase.
He said: “For instance, an MHC house renting at around K120 000 per month may be comparable to a privately-owned house in the same area costing up to K700 000.
“In low-density areas such as Area 10, 11 and 12 in Lilongwe or Nyambadwe in Blantyre, MHC houses may be at K700 000 while similar private properties can cost as much as K2 million per month in rentals. Yet both MHC and private landlords procure maintenance materials at the same market prices.”
The minister also clarified that the adjustments will not be uniform and will range between 10 percent and even 100 percent depending on the condition and location of houses.
Chipungu also said government plans to rehabilitate all 6 688 public houses of which 6 400 are under MHC and 288 under the Department of Housing, as part of efforts to improve living conditions.
On the issue of property sales, he said that government suspended the sale of MHC houses due to concerns that the process had become politicised and indicated that reforms may be considered to ensure fairness and transparency in the future.
The minister announced the rental hike in Parliament in Lilongwe two weeks ago..
