Exploring the Market for Home Improvement Financing in Urban Areas.
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Date
2021
Authors
Oyalowo, B.A.
Muraina, O.
Nubi, T.G.
Ohiro, Y.
Basheer, O.
Raymond, G.
Journal Title
Journal ISSN
Volume Title
Publisher
Department of Estate Management/ University of Lagos, Centre for Housing Studies, University of Lagos-Nigeria.
Abstract
Accessibility of finance for new housing construction has been a significant preoccupation in research, policy, and advocacy circles. Access to finance for maintenance and improvement of the home once acquired remains a relatively under-researched area. This chapter aims to explore the state of the home improvement financing market in Lagos to address this gap. Home improvement financing is essential throughout the lifecycle of a property. It is a mechanism to avoid the risk of permanently substandard homes constructed incrementally and a
safeguard against obsolescence in already completed homes, especially at a neighbourhood scale. Part of a larger scale study on home
improvement financing for the regeneration of informal communities,
this chapter presents findings from an interactive stakeholders' meeting
with eleven (11) homeowners selected from low-income
neighbourhoods in Lagos and representatives of three typologies of
home improvement loan providers. The three typologies are a federal
financial institution, a private sector mortgage bank, and a microfinance
institution. It was found that while there are improvement loans that
low-income homeowners could access, issues around proper legal
documentation limit uptake for those who live in informal settlements. A
re-engineering of the titling framework is required to address this
inequality. The diversity of the home improvement loans in the market will potentially level disparities in access to financial products by lowincome families by providing them with a range of alternatives that fits
their circumstances. However, the absence of neighbourhood-based
home improvement loans limits the feasibility of these loan products for
regeneration purposes, even though there is demand for it. In contrast, it
creates opportunities for deepening the market with equitable and coproduced loan products.
Description
Scholarly article
Keywords
Community regeneration , Financing , Home improvement , Informality , Research Subject Categories::SOCIAL SCIENCES
Citation
Oyalowo, B.A; O. Muraina; T.G. Nubi; Y. Ohiro; O. Basheer; G. Raymond (2021) Exploring the Market for Home Improvement Financing in Urban Areas. Department of Estate Management/ University of Lagos, Centre for Housing Studies, University of Lagos-Nigeria.