Progressive housing approaches in the current Peruvian policies

Abstract

Since 1961, Peruvian governments promoted progressive housing construction as a way to cope with the huge housing deficits resulting from accelerated urbanization, a process which inspired John Turner for a pragmatic approach for progressive housing in poor countries: the self-help approach. The Peruvian political reforms of the 1990s, however, eliminated the support to progressive housing. The housing sector was reformed to promote access by: (a) facilitating mortgage credit as the way to overcome the large housing deficits, and (b) providing land titles in informal neighbourhoods to incorporate the properties to the formal housing market. Programmes for affordable housing were initiated in 2003, which coupled with the uplift of the economy have produced a construction boom and delivered affordable housing. On the other hand, COFOPRI, the programme to regularize land in informal neighbourhoods – considered the world's largest of its type and a model to other countries – has granted more than 1.8 million land titles. Since the main benefits seemed confined to certain groups during the first years, the government of García – installed in July 2006 – reoriented the housing policies towards lower-income groups. In this context, this study explores the role of progressive housing approaches in the new policies and their effects on the housing situation of the poor.