Effect of Mortgage Financing and Affordability on the Performance of Public - Private Partnership in Housing Provision

Abstract

The study examined the performance of Public-Private Partnership (PPP) option as a veritable means for public housing delivery. The study aimed at examining the effect access to mortgage finance and housing affordability has on the performance of Public - Private Partnership in housing provision, with a view to modifying to achieve the desired objective. The study adopted the quantitative approach, data was collected through questionnaire survey from occupants of PPP estates, who were randomly selected from three housing estate. A total of 1050 close-ended questionnaires were distributed to the occupants. The results show that 64.7% variations in the performance of PPP housing schemes was explained by affordability of housing and mortgage finance accessibility. The regression analysis reveals that housing affordability and mortgage finance significantly influenced the performance of PPP housing provision such that a change in housing affordability causes a 98.6% positive change in the performance of PPP housing provision, while there is an inverse relationship between access to mortgage finance and performance of PPP housing provision scheme, up to 70.8%. The implication is that as housing affordability is a strong driver of performance of PPP as a means for housing provision; but access to mortgage finance has a negative effect on the performance of PPP, this may be imply that mostly equity was used in the acquisition of PPP housing units since it was affordable to occupants. The study recommended that the government should come create enabling environment for PPP promoters to provide affordable housing units to the populace which will justify PPP as a veritable public housing scheme and help reduce the massive housing deficit being experienced in the country. Keywords: Housing, Mortgage Finance, Public-Private Partnership DOI: 10.7176/PPAR/11-7-06 Publication date: September 30th 2021