The affordability of general public is declining in housing thanks to a tremendous price rise in land and housing and little investment by the government in the sector, according to a joint study undertaken by the UN-HABITAT, the UN agency for human settlements providing adequate shelter for all, and the Ministry of Physical Planning and Works (MoPPW).

Presenting the findings of the study, Easter van Steekelenburg, Interna-tional Advisor to UN-HABITAT, said that land price has risen by 300 percent since 2003, which has made housing sector increasingly unaffordable for lower income groups.

“Urbanisation in the country is increasing by seven percent per annum basically due to the increase in urban areas and high rate of rural-urban migration,” Easter said citing the report. “Urban population is estimated to be 7 million by 2015 and 9 million by 2020.”

The report reveals that 10 percent of total city dwellers are squatters. “Though the number of squatters in Nepal is little in comparison to other South Asian countries, the situation is quickly worsening and turning into a serious social predicament,” Easter added.

The report highlighted the necessity of land use policy and comprehensive urban land use plan. It also emphasised the need of rental act and its regulation as around 42 percent people live in rented apartments in urban areas, which is 58 percent in the case of Kathmandu.

Suresh Prakash Acharya, joint secretary at the MoPPW, said the government was amending the National Shelter Policy 1996, which will ensure the production of safe and environment friendly housing for all income groups and upgrade the quality.

“The policy too will help in improvement of institutional mechanism by clarifying the role and responsibility of the government, non-government and the private sectors,” Acharya added.

source:The Kathmandu Post (2010),"Housing growing unaffordable for public-Report",The Kathmandu Post,1 Nov 2010