Malawi Housing hiked rentals effective September
THE Malawi Housing Corporation (MHC) has resolved to stagger implementation of the controversial adjusted housing rentals from September 1, 2017.
Last month, the corporation announced an increase in its rentals by an average of 48 percent due to the cost of operations and for sustainability of its functions. MHC, however, pended the decision after tenants expressed reservations.
A statement issued yesterday said the corporation undertook an inquiry into the rise of rental costs to its tenants and the Chief Executive Office (CEO), under the direction of the board, has proposed that the rental adjustment should be staggered.
“It has been resolved that, in adjusting the rentals, there should be a balance that ensures that the rentals are affordable to the tenant whilst MHC continues to invest and maintain its properties as well as expanding its stock,” reads the statement.
MHC tenants’ association spokesperson, Goodnews Mphande, said he cannot comment much on the development since they are not aware of the gradual raise the corporation has announced.
“As of now, I may not comment much on it because MHC says each tenant will receive a letter and we are not sure of the contents. Again, we are not sure of how they will do it, so let us just wait and see until the announced time comes,” he said.
During a press conference last month, MHC CEO, Eunice Napolo, said that with the present rentals, revenue for a particular house could not be sufficient to maintain such a house.
She then, argued the increase in rentals was necessary for the corporation to continue maintenance works and construction of houses.
The decision did not please Blantyre-based tenants who obtained a court injunction.
Meanwhile, the institution has been harbouring plans to construct 15,000 houses with construction of 2,500 expected to start this financial year.
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