Zimbabwe’s Building Societies have slashed lending rates to 12 percent in compliance with a Reserve Bank of Zimbabwe (RBZ) directive to offer low costs housing finance to Zimbabweans.

The directive by the central bank is being made after revelations that despite the availability of funds, most people are failing to get access to the loans due to the high costs.

Association of Housing Financiers in Zimbabwe chairman, Mr Felix Gwandekwande confirmed to the ZBC News that the borrowing rates have been slashed in the past few weeks to an average of 12 percent per year.

“We are really happy about the new developments which we anticipate to unlock more growth in the housing financing sector,” said Mr Gwandekwande.

The Building Societies are courting external investors over the possibilities of fresh funding to sustain the ever-rising demand for low cost housing loans.

The current national estimates of housing requirements stand at 1.25 million housing units, with revelations the demand is mainly concentrated in the low income end of the market.