Housing Ministers reject suggestion that house lots be distributed for free

– as opposition parties propose free lots but citizens pay for infrastructure

The suggestions and promises being made by political aspirants that house lots can be distributed to citizens for free, while citizens can pay for infrastructure, were rejected Friday by the Ministers of Housing Collin Croal and Susan Rodrigues.
“You have parties that are now coming to say if they can get an opportunity to go into office, all the lands must be free…But it costs money,” Minister Croal stressed on Friday.

Minister Croal explained that the Government invests significant resources into the development of these housing developments, which are then sold to citizens at a heavily subsidised cost.
He pointed out that within the last five years, 95 new housing areas were developed through which there was a minimum investment of $250 billion.
“So, it’s very easy as politicians…to say “yes, everything is free, everything should be free”,” the Housing Minister contended as he urged right-thinking Guyanese to ignore the noise and think about what is sustainable and practical.
In fact, he further highlighted that despite development costs increasing, the price of lands for citizens has remained the same.
He noted that “you have low-income (lands) today that is as low as $226,000.”
Similar sentiments were echoed by Minister Rodrigues who also observed political aspirants claiming “we’ll give you a free house lot, you will pay for the infrastructure”.
But this proposal, she indicated, will cost citizens more.
“…the infrastructure is more expensive obviously than the cost that you are paying for the land.” Minister Rodrigues explained that it costs about $5 million to install infrastructure and utilities per house lot – most of which are given to low-middle-income families – but citizens only pay between $500,000 to $800,000.
In this regard, she encouraged citizens to ignore the noise and determine what is practical and sustainable. “You have to assess for yourselves as to who really has a plan that delivers, a plan that makes sense. I know all of us are capable of drowning out the noise.”
Meanwhile, both Ministers noted that in addition to the subsidised costs for the land, the Government has rolled out a number of initiatives aimed at helping citizens realise their dreams of home ownership.
For instance, Minister Croal explained that through Government intervention, the commercial banks have reduced their mortgage lending rate – making it more affordable and easier for citizens to access finance for housing development.
He also referred to the steel and cement subsidy programme, which allows homebuilders to offset costs associated with construction.
Minister Rodrigues also reminded that the Government removed VAT from building and construction materials.
“And of course, we’ve been building homes at affordable prices also to help people to acquire home ownership very early,” she noted.