Growth Housing finance Land administration chain Dr. Monika Hjeds Löfmark National Housing Credit...
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Transcript of Growth Housing finance Land administration chain Dr. Monika Hjeds Löfmark National Housing Credit...
GrowthHousing finance
Land administration chain
Dr. Monika Hjeds LöfmarkNational Housing Credit Guarantee Board,
SwedenWUF 2010
Short introduction– Growth and development
Formal and informal methods of finance– Mortgages– Savings– Micro finance– Community loans– Remittances
The land administration chain– Connecting the issues of land, security of tenure and
housing finance
Outline of presentation
Introduction
Growth and capital– Physical– Human– Social
Growth and institutions– Formal– Informal
Growth and actions– Local knowledge and institutions are crucial– Do not invent the wheel twice– Gradual changes– Formal Institutional Improvements– Broad actions
Growth, urbanization and housing– Housing and housing finance
Formal mortgages
Volatile macro economy Lack of (long term) capital Lack of financial infrastructure Legal system, housing market reg., credit
bureau, valuations Credit risk Collaterals and income
– How to include households with low and moderate income?
– How to create a better infrastructure, secured ledning environment, adequate funding sources, legal systems, regulations, long term funding, insurance products etc.?
Formal Mortgages, % of GDP
Savings
Most common financial method Prepare housholds for regular payments Increase sustainability Larger autonomy for the savers Saving clubs, mobile bankers Connected with micro finance loan and
community loan High levels of inflation discourages savings
– How to formalize savings without high cost for the households?
Interest rates, MF
Community loans/savings
Loans for groups Promotes social development and
increases social capital, Reaches the (well organized) poor Infrastructure, land, housing Growing in importance
– How to scale them up?– How to increase their political impact?– How to connect with formal solutions, private
actors?
Remittances
Immigrants and foreign workers invest in their home countries
Huge amounts, significant part of GDP Little political impact Seldom used as income and collateral
– How to create more/better data?– How to include them into the formal systems?
Remittances, % of GDP, 2007
Guarantees
May correct for market failures Allocate risks Link formal and formal markets Demonstration projects Use carefully, must give incentive to
responsible behaviour
Land governance and housing finance
Property rights and introduction of titling processes– Pros and cons
Security of tenure – gradual process– If tenure is informal, security may depend on length,
size of occupation, community strength, support from NGOs etc.
– Tenure upgrading can be linked with housing loans– Innovative tenure and innovative loans– Provision of temporary occupation rights /leases,
long term leases and connect with finance– Simplified registration that can be upgraded– Strategic planning, planning standards according to
poor households
Ex: Registration/taxation in Ghana
Land administration chain
Land administration chain
BKN, the National Housing Credit Guarantee Board and Lantmäteriet - the Swedish mapping, cadastral and land registration authority
Launched at a seminar in Stockholm in June 2008 Improving Slum conditions through Innovative Financing. (by FIG ,UN-HABITAT, Lantmäteriet and BKN)
Educational program– Lantmäteriet discusses and presents issues concerning
good land governance, registration, GIS etc – BKN focus on housing finance in informal markets. We
are particularly interested in the role of guarantees and how guarantees may work to connect informal and formal markets.
Conclusion
Build social, human and physical capitalBuild and develop institutionsLink formal and informal institutions (ex. Fin.)Gradual and broad changesLocal initiatives/actions are crucialCooperation and inspiration
Remittances, billion US dollar 2008