Relationship between housing finance institutional contexts and financial contexts to housing ownership by low-income earners in Bauchi LGA, Nigeria

Abstract

Purpose The purpose of this paper is to investigate the relationship between housing finance institutional related variables and financial related variables of low-income earners in Bauchi Local Government Area, Bauchi, Nigeria. Design/methodology/approach In this study, quantitative research approach was adopted. Self-administered structured questionnaires were used to collect information from 500 primary school teachers in Bauchi Local Government Area, Bauchi, Nigeria. A correlation analysis was carried out to find the relationship between housing finance institutional contexts and finance contexts to low-income earners in the study area using SPSS Version 23 software. Findings The findings shows that the low-income earners were more concerned with the accessibility and affordability on housing ownership, and it also showed that performance and effectiveness of the housing finance institutions were of paramount importance to housing ownership for the low-income earners in the study area. Practical implications The finance institutions are the prime consumer of these research findings. The participants in the finance institutions are going to benefit from the low-income earners’ housing ownership development. Originality/value The paper also emphasized that the finance institutions should make the housing finance loan accessible and affordable to the low-income earners to meet their dream to sustainable housing ownership.

Effect of institutional context and finance context of housing finance on home ownership among low-income earners in Bauchi

“…A household is said to have a housing affordability problem, in most formulations of the term, when it pays more than a certain percentage of its income to obtain adequate and appropriate housing. Gan and Hill (2009) and Gambo et al (2021a) posited that the capability of a household to purchase a house can be viewed in at least three different ways. We draw a distinction between the concepts of purchase affordability, repayment affordability and income affordability.…”

“…Although most people's incomes especially primary school teachers in Nigeria can hardly purchase public and private developers housing supply, public developers do give out these houses in form of mortgage. Ademiluyi and Raji (2008) and Gambo et al (2021a) observed that private developers tend to contribute to a large proportion, the entire housing stock in the country. Damulak (2015) also observed that policy makers are not really aware of the magnitude of housing problems for low-income earners when looking at increase in house rent and rising cost of building materials.…”

“…Damulak (2015) also observed that policy makers are not really aware of the magnitude of housing problems for low-income earners when looking at increase in house rent and rising cost of building materials. Olateju (1990) and Gambo et al (2021a) noted that the increasing high rent can be attributed to the decrease in housing stock. Housing is a critical component in the social and economic fabric of all nations.…”

“…However, only very few proportion of the income earners have been able to access these mortgages. This is because the performance of the housing finance system in loan disbursement has been dismal and discouraging (Atamewan et al , 2017; Gambo et al , 2021a).…”

“…Social equity concerns the social view of housing and relates to a situation in which all citizens have access to housing without limitations as to one’s socio economic background or status in society. Most of the contemporary problems affecting access to housing have been reinforced by societal negative attitude toward the vulnerable groups among the low-income groups (Opoko and Oluwatayo, 2014; Gambo et al , 2021a).…”