Land Ownership – The Key to Upliftment

What is the issue?

FSG - A social consultancy, recently published its research on urban housing in India.
It finds that ‘land ownership’ holds the key for millions to access associated social benefits.

Why is Ownership the Key?

An estimated additional 1.8 million people are homeless in India.
A quarter of India’s urban population (37 million households) live in slums.
Many people in slums have little control over the property they live on - which usually is their only asset.
Therefore, a publicly recognition of ownership becomes necessary for access to many social benefits and formal sector loans.
Owning land boosts health profiles, educational outcomes and gender equality and the converse is equally true.
Hence, housing ought to rank higher than education and health in priority and is the first step for providing a decent life & livihood.
A decent habitat for the poor will not only contribute towards their well-being but also catalyse overall social and economic growth.

What are the challenges for India?

Slums - An estimated 58% of slum areas have open drainages, 43% transport water from outside, 34% have no public toilets.
There is an extensive need to repair existing housing stock and enhance essential services as presently they are seriously defecient.
Growing Demand - India is urbanising fast and around 38% of India (540 million people) will be urbanised by 2025.
Experts estimate that 18 million households in India are in dire need of better low-income housing.
All these, when paired with a shrinking supply of land and high construction costs - leads to a growing slum population.
Relocation - Several attempts to relocate slum dwellers to better housing have failed.
This is mainly because new sites are usually in the outskirts that hampers access of residents to employment, schools and other amenities.
Slum-dwellers hence favour upgradation of existing facilities and secure tenancy in-situ (in the same place).

What are the FSG Recommendations for Improved Housing?

Increasing Legal Supply - Government should create an environment that increases the supply of affordable, legal shelters with tenure security.
Slum upgradation - Informal settlements that isn’t a hinderance for the larger public need to be upgraded through public services.
Services such as roads, electricity, water supply and sanitation need to be taken up.
Such actions are found to create a high level of perceived tenure security without a formal change of legal status.
This will als0 encouraged local private investments & locality improvisation activities.
Ownership - There is also a recommendation for providing basic ownership and property rights to traditional dwellers.
Recognition of ownership eliminates the fear of eviction and incentivises area improvisation by owners themselves.

What are the proposed Ownership Modules?

Property rights has conventionally meant the right to use, develop and transfer property.
But FSG advocates a variation for regularised slum property.

It envisions Property rights for informal housing that guarentee the owner-occupant a heritable & mortgageable document only.
While securing the property for residential use, it denies the sale or rental rights to the owner.
Alternatively, giving property rights on time stipulated lease can be considered.
Also, certain restricted property transfer modules such as only between low-income groups can be considered.
Restrictions on ownership are mainly intended to prevent misuse and deter prolefereation of slums in future.

Source: Businessline