Growth Housing finance Land administration chain Dr. Monika Hjeds Löfmark National Housing Credit Guarantee Board, Sweden WUF 2010. Short introduction Growth and development Formal and informal methods of finance Mortgages Savings Micro finance Community loans Remittances
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Land administration chain
Dr. Monika Hjeds Löfmark
National Housing Credit Guarantee Board, Sweden
Growth and development
Formal and informal methods of finance
The land administration chain
Connecting the issues of land, security of tenure and housing finance
Outline of presentation
Growth and capital
Growth and institutions
Growth and actions
Local knowledge and institutions are crucial
Do not invent the wheel twice
Formal Institutional Improvements
Growth, urbanization and housing
Housing and housing finance
Volatile macro economy
Lack of (long term) capital
Lack of financial infrastructure
Legal system, housing market reg., credit bureau, valuations
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.?
Most common financial method
Prepare housholds for regular payments
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?
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?
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?
May correct for market failures
Link formal and formal markets
Use carefully, must give incentive to responsible behaviour
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
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)
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.
Build social, human and physical capital
Build and develop institutions
Link formal and informal institutions (ex. Fin.)
Gradual and broad changes
Local initiatives/actions are crucial
Cooperation and inspiration