Making home-ownership attainable again
Barbados faces a growing housing crisis, particularly among low-income earners who struggle to access affordable, secure, and dignified living conditions. Although the Housing Credit Fund (HCF) was established to support households earning under 51,000 BBD annually, according to the Central Bank of Barbados, demand continues to outpace supply.
Most individuals do not earn enough to meet the requirements of financial institutions to qualify for a mortgage. Many families are forced into overcrowded or substandard housing, exacerbating social vulnerabilities such as domestic instability, poor health outcomes, and limited educational attainment for children.
Without targeted intervention, this crisis threatens to deepen inequality and hinder national development.
Our four-pronged solution for this crisis is such:
An aggressive genuine rent-to-own policy, where 100% mortgages will be granted to public officers and other private sector employees with incomes of between $2,500 and $5,000 monthly.
1
An agency will be re-mandated or created to superintend this policy, where 100% mortgages will be granted with reasonable market driven interest rates.
2
A mix of very low-costs quality houses, single stand-alone units, and terrace units with no frills, to allow the owners to finish the interior fittings, for example bedroom wardrobes and kitchen cabinets, thus reducing the initial building costs.
3
The implementation of reverse mortgages, particularly as it relates to those persons over the age of 60 years old.
4
Rent-to-Own
We are committed to breaking the cycle of generational renting and expanding homeownership for working-class and middle-income Barbadians. Our aggressive, genuine rent-to-own policy will make it possible for thousands of citizens to secure a home, many for the first time in their lives.
Under this policy, 100% mortgages will be granted to public officers and private sector employees earning 2,500-5,000 BBD monthly. These mortgages will be provided at reasonable, market-driven interest rates, with no deposit required, thus removing one of the largest barriers to entry for first-time buyers.
A dedicated housing authority or newly-mandated agency will be established to superintend and manage the program, ensuring transparency, efficiency, and accountability.
Low cost. Quality housing!
Very low-cost, quality housing units, built to last and designed for practical, comfortable living.
A mix of single stand-alone homes and terraced units, located in strategically selected communities to support access to jobs, transport, schools, and other essential services.
Homes will come with essential structural finishes only (roofing, walls, plumbing, and electrical wiring). Non-essential fittings, such as wardrobes, kitchen cabinets, and decorative finish, will be left to the new owner’s discretion and budget, thereby reducing construction costs and sale prices while allowing homeowners to personalise their spaces over time.
This approach promotes dignity through ownership, empowers families, and gives young professionals and working-class citizens a genuine stake in the national economy. We will also integrate green energy standards into new housing developments to reduce long-term utility costs and promote environmental sustainability. Developers will be incentivised to build affordable units through tax breaks and fast-track approvals. We will also use land in high demand urban areas efficiently by constructing multi-story housing complexes on government-owned land to maximise space.
F.O.D. will offer financial support for repairs and upgrades to existing low-income homes, through home improvement grants. This could improve living standards and reduce long-term maintenance costs, ensuring the family homes pass successfully from generation to generation. This enhances generational stability.
We will empower citizens to make informed decisions and avoid predatory lending by facilitating workshops on budgeting, mortgage management, and tenant rights.
A home attainable for all ages
A reverse mortgage is a financial arrangement where homeowners aged 60 and over can access part of the equity in their homes without having to sell or vacate the property. Instead of making monthly mortgage payments, the homeowner receives payments from a lender, and repayment is only required when the home is sold, or the owner passes away.
This policy is about preserving dignity in retirement, giving our seniors the freedom to access the wealth they built over a lifetime, and easing the financial burden on younger family members who may otherwise carry the full responsibility for elder care.
Strict regulatory oversight to ensure transparency, fairness, and protection against predatory lending.
Collaboration with financial institutions and credit unions to create safe, regulated reverse mortgage products that meet international best practices.
Public education campaigns to help seniors and their families understand the benefits and risks of reverse mortgages.
Provisions to ensure that homeowners can remain in their homes for life, as long as property taxes and basic maintenance are upheld.
Mandatory House Replacement Insurance
We propose the implementation of shared mandatory house replacement insurance on all houses built with the state’s assistance, (not including those for long-term rental or mortgage acquired ownership).
The rationale for the implementation of this policy is the absence of an efficient, humane, and viable solution to replace dwellings built with the state’s assistance that have been lost to catastrophe, especially fire.
A reputable insurance company should be established with a policy to cover all government-assisted houses built by the state, with premiums being shared by 80% paid by the government and 20% by the legitimate occupier of the dwelling.
The occupier’s portion of the premium will be levied by an upfront one-off payment of the equivalent of ten years premiums at the current market rate.
