Homeownership aspirations: drawing on the experiences of renters and landlords in a deregulated private rental sector

Abstract

While research in the developed world has shown that aspirations for homeownership are influenced in part by negative experiences in the private rented sector, little is known about the situation in developing countries. To address this gap, this article presents a situational analysis of renters and how their current tenure situations shape their homeownership ambitions. Using qualitative inquiry involving in-depth interviews with 20 renters and 10 landlords in Kumasi, the second largest city in Ghana, findings show that homeownership is importantly influenced by the renters’ experiences as co-occupants with landlords and landladies. Embedded in an epoch of high homeownership aspirations, the ambitions of renters to build houses for themselves are partly motivated by the perceived extortionist behaviour of landlords as perpetrated through ‘rent in advance’ systems, discretionary ability to increase rent suddenly and unfair allocation of utility bills to renters. Homeownership ambitions of renters are also influenced by the insecurity in rental tenure and limited freedom in rented dwellings.

Keywords:

• Private rented sector
• housing aspiration
• landlords
• tenants
• homeownership
• Ghana

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1 The point system is usually utilised in the apportioning of utility bills such as electricity and water to different households existing in a dwelling that uses a common water or electric meter. Consumption points for electricity are determined by the electrical gadgets used by the household while those for water are determined by the number of members in the household.

2 GH₵ 4.73 = USD 1 (Exchange rate as at 1 June 2018).

3 The justification was given by the Chief Rent Control Officer at the Rent Control Department and was reported as : “So when we ask them to take one month, the one month [amount] will not help them to pay off the loans given to them…we have come to realise that it is an inconvenience for landlords. [Also] One month or three months’ rent cannot help landlords to renovate their properties [sic]. So we have taken into consideration that one year rent will resolve the matter of paying advance to help the landlords to restructure their properties [sic]” (see http://www.ghanaweb.com/GhanaHomePage/NewsArchive/New-rent-bill-to-make-one-year-advance-646558) (Accessed on November 30, 2018).

4 ‘Half plots’ is a phenomenon in Ghanaian cities where standard plot sizes (100 × 120 ft/100 × 100 ft/100 × 80 ft, etc.) are further subdivided by traditional land owners to meet the housing needs of growing population.