Housing Finance in Lesotho


Lesotho has a growing housing finance sector. As the mortgage market does not yet meet the breadth of the population who might afford a mortgage, most households still finance their housing independently, with savings or non-mortgage credit.

The lowest recorded interest rate on a mortgage in Lesotho is 12 percent, as of September 2016, and requires at least a 12 percent down payment. The cheapest newly built house by a developer recorded by CAHF is US$ 24 500, which is for a 72 square metre unit. Cement prices are lower than the continental average, at US$ 5.50 for a 50-kilogram bag.

With an urbanisation rate of 3.15 percent, demand for affordable housing will remain strong, both for rental and purchase. Housing microfinance will play an important role in increasing the supply of housing, and efforts to increase access should be undertaken. Maseru, the capital city of Lesotho, has seen significant expansion through incremental construction, while the Lesotho Housing and Land Development Corporation (LHLDC), a member of the African Union for Housing Finance (AUHF), is a parastatal tasked with increasing housing supply. With a good macroeconomic environment, sound policy, better data and increased access to affordable credit, an enabled housing market can increasingly provide housing that the average household in Lesotho can afford.

Find out more information on the housing finance sector of Lesotho, including key stakeholders, important policies and housing affordability:

Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2018 edition, which has up-to-date profiles for 54 African countries.

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