Responding to the Chamber, MP Chris Famous says banks must make it easier to finance rental investment
The housing crisis threatens to be a knockout punch for Bermuda’s economic goals.
Chamber of Commerce President Marico Thomas, in boxing regalia, told attendees at their AGM last week that, to reach a utopia population of 70,000 people, we need to provide about 2,500 additonal homes.
Increasing the working population by thousands is something Government has also lauded as being vital to Bermuda’s future.
Chris Famous, PLP MP and chair of the Bermuda Housing Corporation, suggests it can’t happen without a serious commitment from those outside of Government.
“The reality is that the Housing Corporation has built in the last year 70 units”, Mr Famous says. “This year, we’re targeted to build/renovate 100 new units.”
“The majority of land on this island is owned by private entities, whether they be families or they be companies.”
“In order to accommodate the goal that the Bermuda Chamber of Commerce is speaking about, logistically, it’s going to be the private sector that has to build these houses.”
As of April 2025, the BHC has worked with 25 private property owners in a scheme to renovate their rental units. Following this, Government and the owner/s will share the rental income for a seven year period.
Many more properties will be needed in the future, Mr Famous affirmed.
“We have the Southampton Princess which will be coming online in the next two years. Elbow beach will be coming online in next 2 or 3 years.”
“They’re going to need five, six, seven hundred staff each… where are they going to live? We have to build more for them.”
An online commenter suggested Government could provide duty relief on construction materials for private housing investors. The Fairmont Southampton, the Hamilton Princess and other hotels have all received years of tax and duty concessions, including construction materials.
Could a much smaller version of this work for the private sector?
“There was some relief on aggregate”, Mr Famous says, “which helps to bring down the cost of the actual building materials… cement and cement block… I’m sure there’s other things that can be considered.”
“But, the biggest hindrance in building for many Bermudians is bank rates.”
“You’ve got to come up with 20% down payment… depending on the bank, you could be dealing with up to 10% mortgage rates.”
“If we want population increase, then there has to be some give and take, not just on government. There has to be give and take on private sector business entities that would aid Bermudians to purchase homes, or build on to their homes.”
Gary Foster Skelton asked Chris Famous whether Government may support such investments…
GFS – “The PLP government has worked with the private sector, worked with banking, to create an avenue for first time home buyers… do you think government needs to take another collaborative role with banks to try and encourage [private investment in housing]?”
Chris Famous – “So what you’re talking about is the mortgage guarantee program through the Bermuda Commercial Bank… which gets to the point that when the down payment is going from 20% down to 10%, and the interest rates are fixed at 5%, it means more Bermudians are able to purchase their home.”
GFS – “Bermuda commercial Bank wasn’t going to do that themselves… they needed some help from government. So is do you think government, in the same way, should try and work with the banks to… create an environment where it’s easier for private individuals to put more housing on the market?”
Chris Famous – “All options are open. I’m simply saying… it’s well and fine for the Chamber of Commerce and others to say we need a population increase, and we need 2,500 more houses. But, what also needs to be said is that one of the biggest cost factors is Bermudians being able to get on that housing ladder. Bermudians being been able to afford to renovate the houses. And what does it all come back to? Financing.”
“The government – your tax dollars, my tax dollars – cannot be used for every single thing.”
“We as a government are doing our part… the private sector, whether it be individuals, whether it be companies, has to do more.”
