CHAPTER ONE
INTRODUCTION
1.0 Introduction
The delivery system of housing in the country is a combination of many integrated components which include land, building materials, infrastructure, policies, building regulations and more importantly finance. The priority accorded the issue of housing is immense; to most governments, the availability of sufficient but basic housing for all is often stated as a priority for enhancing the social needs of the society. In Nigeriaalone there is a shortage of 150,000 units annually (National housing policy, 2004), the government alone with its public housing initiatives cannot curb this problem hence the need for private investors in the real estate market.
Habitable housing contributes to the health, efficiency, social behavior and general welfare of the population. Apart from providing man with shelter and security, housing plays a major role serving as an asset. For any typical home-owner, the house is a major asset that adds onto his portfolio and for many households; the purchase of a house represents a lifelong investment and a store of wealth. Provision of housing services depends mostly upon a wellfunctioning housing finance system. The consideration of constructing or acquiring a house is influenced by the cost and various government economic policies which could be fiscal or monetary (Giussani and Hadjimatheou, 1991) and even depends on the economic system adopted in a country.
Housing is a major purchase requiring long-term financing, and the factors that are associated with well-functioning housing finance systems are those that enable the provision of longterm finance. It is evident that countries with stronger legal rights for borrowers and lenders through collateral and bankruptcy laws, credit information systems that are well informed, and a stable macroeconomic environment have more developed housing finance systems (Warnock 2008). These factors also help explain the variation in housing finance across emerging market economies.
1.1 Statement of the Problem
In line with the government’s effort in achieving Vision 2020 and the overall development of the economy, provision of housing is essential. With an acute shortage of 150000 units annually and the ever-increasing population, a housing problem arises and consequently social and economic problems. Housing here is not the only problem, but adequate housing that can allow for the comfort ability levels sort by mankind. . The importance attached to housing problems by the government has resulted in the adoption of the housing policy; its implementation and effectiveness has not been adequate as is depicted by the current state of housing in Nigeria.
Fallis (1994) noted that housing problem might be focused on the causes, for example; the housing problem might be described as being caused by an underdeveloped mortgage market which leads to the loss of simple rental housing. There were various reasons deduced as causes of housing problems. The most important reason has been the variation between the price of habitable and decent accommodation and the number of individuals that can afford it. In the long term, market forces and government intervention determine the specific size of each of the housing tenures (Warnock 2008)