News / National
Zim set to miss 2020 vision on housing due to liquidity and employment constrains
13 Feb 2012 at 10:48hrs | Views
Zimbabwe is set to miss out on the 2020 housing for all vision due to current liquidity challanges and high rate of unemployment.
Kingdom Financial Holdings Limited said in its weekly commentary that the shortage of housing countrywide will continue and the situation that is contributing to high rentals.
"Zimbabwe is sure to miss the 2020 vision of housing for all given the urrent liquidity and employment constrains that have made mortgage finance either too expensive or inaccessible.
The government which used to fund about 60 percent of construction work in the country is currently grappling with recurrent expenditure dominated by the civil service wage bill" said Kingdom Financial Holdings Limited said in its weekly commentary.
The private sector is in short of long term funding and hence incapacitated.
The bank said it doubts whether landlords would adhere to government calls to revert to December 2011 rentals.
HWhilst the Consumer Council of Zimbabwe anticipates that February 2012 rentals will revert back to the December rate as per directive of the minister of National Housing and Social Amenities, we doubt such a
thing will occur" said the bank.
It said most tenants would rather pay the high rentals than take their landlords to the rent board for downward review as such a move would "be tantamount to asking for a notice of evection".
Government figures state that more than one million Zimbabweans are on housing waiting list of the respective municipalities.
A recent survey by CCZ indicated that the cost of living for low income family of six increased 5,7 percent in January to $577 with rentals rising from $150 per month to $180 on average.
Kingdom Financial Holdings Limited said in its weekly commentary that the shortage of housing countrywide will continue and the situation that is contributing to high rentals.
"Zimbabwe is sure to miss the 2020 vision of housing for all given the urrent liquidity and employment constrains that have made mortgage finance either too expensive or inaccessible.
The government which used to fund about 60 percent of construction work in the country is currently grappling with recurrent expenditure dominated by the civil service wage bill" said Kingdom Financial Holdings Limited said in its weekly commentary.
The private sector is in short of long term funding and hence incapacitated.
HWhilst the Consumer Council of Zimbabwe anticipates that February 2012 rentals will revert back to the December rate as per directive of the minister of National Housing and Social Amenities, we doubt such a
thing will occur" said the bank.
It said most tenants would rather pay the high rentals than take their landlords to the rent board for downward review as such a move would "be tantamount to asking for a notice of evection".
Government figures state that more than one million Zimbabweans are on housing waiting list of the respective municipalities.
A recent survey by CCZ indicated that the cost of living for low income family of six increased 5,7 percent in January to $577 with rentals rising from $150 per month to $180 on average.
Source - Byo24News
