A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
Institutional Regulatory Framework and Affordable Rental Housing Delivery in Kenya
Providing legislative and administrative instruments to promote and achieve a healthy housing sector development while protecting the environment is the core function of the institutional regulatory structure. But the regulatory framework often becomes a key restriction that prevents developers from taking part in the construction of affordable rental units. Therefore, the primary purpose of this research is to assess whether or not the existing legislative and regulatory framework facilitates or restricts the supply of affordable rental housing. This study used a qualitative research approach, consisting of in-depth interviews and document reviews. To assess the impact of the institutions responsible for regulating the housing sector on the outcome of the rental housing market, it uses primary data gathered mostly from private property developers and secondary data made up of relevant documents. The results demonstrate that land-use restrictions generate unintended underlying obstacles that increase transaction costs, with a skewed impact on the rental housing development industry. Furthermore, the legal environment is discouraging to rental housing developers because of unjust and uncertain property rights that are more beneficial to tenants than landlords, who perceive them as sources of expensive transaction costs. When compared to the one-time taxes levied against build-to-sell development, the vast majority of which are paid by the purchasers, the tax system is similarly more punishing to the rental housing industry since it is both high and lasts for the life of the endeavor. The tax system should be tenure-neutral and non-distortive to the housing market, and the approval procedure should be streamlined by unifying the process into a one-stop shop so that developers do not have to seek for approval from multiple organizations.
Institutional Regulatory Framework and Affordable Rental Housing Delivery in Kenya
Providing legislative and administrative instruments to promote and achieve a healthy housing sector development while protecting the environment is the core function of the institutional regulatory structure. But the regulatory framework often becomes a key restriction that prevents developers from taking part in the construction of affordable rental units. Therefore, the primary purpose of this research is to assess whether or not the existing legislative and regulatory framework facilitates or restricts the supply of affordable rental housing. This study used a qualitative research approach, consisting of in-depth interviews and document reviews. To assess the impact of the institutions responsible for regulating the housing sector on the outcome of the rental housing market, it uses primary data gathered mostly from private property developers and secondary data made up of relevant documents. The results demonstrate that land-use restrictions generate unintended underlying obstacles that increase transaction costs, with a skewed impact on the rental housing development industry. Furthermore, the legal environment is discouraging to rental housing developers because of unjust and uncertain property rights that are more beneficial to tenants than landlords, who perceive them as sources of expensive transaction costs. When compared to the one-time taxes levied against build-to-sell development, the vast majority of which are paid by the purchasers, the tax system is similarly more punishing to the rental housing industry since it is both high and lasts for the life of the endeavor. The tax system should be tenure-neutral and non-distortive to the housing market, and the approval procedure should be streamlined by unifying the process into a one-stop shop so that developers do not have to seek for approval from multiple organizations.
Institutional Regulatory Framework and Affordable Rental Housing Delivery in Kenya
Aigbavboa, Clinton (editor) / Thwala, Wellington (editor) / Aghimien, Douglas (editor) / Olonde, Victor Otieno (author) / Mooya, Manya Mainza (author) / Rajaratnam, Kanshukan (author)
Construction Industry Development Board Postgraduate Research Conference ; 2022 ; Eastern Cape, South Africa
Towards a Sustainable Construction Industry: The Role of Innovation and Digitalisation ; Chapter: 42 ; 425-434
2023-04-24
10 pages
Article/Chapter (Book)
Electronic Resource
English
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