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The regulatory environment and housing finance market in Ghana

The regulatory environment and housing finance market in Ghana Purpose – The housing finance market in Ghana is highly underdeveloped. This may be as a result of unfriendly or poor regulatory environment. This paper seeks to examine the regulatory environment and to determine its impact on the development of the formal housing finance market in the country. Design/methodology/approach – The paper executes this by surveying the housing finance literature. It also carries out a review of the legal framework of the country's mortgage market. Findings – It is found that inadequate foreclosure rights of lenders before December 2008 constrained the development of the formal housing finance market in Ghana. The research notes that the enactment of the Home Mortgage Finance Act, 2008 (Act 770) in December 2008 has created a conducive legal environment for collateralised lending in the country. This has improved the prospects of developing the housing finance market in the country. Practical implications – It is noted that a credit bureau industry and mortgage refinancing mechanisms must be put in place if the Act 770, 2008 is to facilitate mortgage market development in the country. It recommends additional policy and institutional reforms. Originality/value – The paper identifies the legal and institutional constraints on housing finance market development in Ghana. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Property Management Emerald Publishing

The regulatory environment and housing finance market in Ghana

Property Management , Volume 29 (5): 17 – Oct 18, 2011

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Publisher
Emerald Publishing
Copyright
Copyright © 2011 Emerald Group Publishing Limited. All rights reserved.
ISSN
0263-7472
DOI
10.1108/02637471111178100
Publisher site
See Article on Publisher Site

Abstract

Purpose – The housing finance market in Ghana is highly underdeveloped. This may be as a result of unfriendly or poor regulatory environment. This paper seeks to examine the regulatory environment and to determine its impact on the development of the formal housing finance market in the country. Design/methodology/approach – The paper executes this by surveying the housing finance literature. It also carries out a review of the legal framework of the country's mortgage market. Findings – It is found that inadequate foreclosure rights of lenders before December 2008 constrained the development of the formal housing finance market in Ghana. The research notes that the enactment of the Home Mortgage Finance Act, 2008 (Act 770) in December 2008 has created a conducive legal environment for collateralised lending in the country. This has improved the prospects of developing the housing finance market in the country. Practical implications – It is noted that a credit bureau industry and mortgage refinancing mechanisms must be put in place if the Act 770, 2008 is to facilitate mortgage market development in the country. It recommends additional policy and institutional reforms. Originality/value – The paper identifies the legal and institutional constraints on housing finance market development in Ghana.

Journal

Property ManagementEmerald Publishing

Published: Oct 18, 2011

Keywords: Ghana; The legal framework; Collateralized lending; Housing finance market; Financial flexibility; Lending services

References