24 Feb 2021

Botswana Housing Corporation (BHC) rentals will be increased over a period of five years starting this April, it has been announced.

Minister of Infrastructure and Housing Development Mr Mmusi Kgafela made the announcement during a media briefing in Gaborone on Tuesday.

Pointing out that BHC had not increased rentals for 17 years, Mr Kgafela said the current sub economic rentals were a comfort zone for tenants but worked against government’s efforts of promoting home ownership.  

BHC, he said, received no  government subversion and had been doing its best to keep afloat by employing different  fund raising strategies such as providing consultancy and architectural services thereby encroaching into private sector territory.

Mr Kgafela said the corporation also raised funds from the open financial markets and had to pay interest on those loans.

Comparing current BHC rentals with markets rates, he said a low cost house went for P537 against the market’s P2 050, P1 330 for medium cost as opposed to P3 700 and P2 162 for high cost against P5 200.

He said current rental for a BHC townhouse was P1 866 as opposed to the market price of P5 300 while a BHC flat went for P1 238 against P3 500.

Minister Kgafela promised that BHC rentals would always be 20 per cent below market as per government’s commitment.

For his part, BHC chief executive officer Mr Regionald Motswaiso said even though the market was self regulating, Batswana would still be on the safe side since BHC rentals would always be 20 per cent below the market rate.

Stressing that the only way for BHC to successfully carry out its mandate was through the long overdue rental increase, Mr Motswaiso said the private sector had complained about BHC providing services that it was supposed to render.

The corporation, he said,  had been working beyond its mandate to generate funds. 

He dismissed claims that the rental increases would influence other landlords to follow suit adding that BHC rentals had long been left behind.

 

Mr Motswaiso invited BHC tenants who might be affected by COVID-19 financially to approach its offices for assistance. ENDS