Our man in Malawi ponders the significance of property ownership.

Further to my last letter on my trip to the village of Enyezini, I thought it would be worth noting another point of interest that emerged from the visit: property rights. I had always read that with correct titles to property, development would inevitably follow. The argument stands to reason, a business or homeowner can use the property to borrow against gaining much needed capital to grow his business or buy good associated with development.

Armed with this knowledge I dutifully asked everyone if they owned their property, could they prove it, and why therefore they weren't realising their ambitions with loans from banks. The people I spoke to didn't see the link between property ownership and borrowing and it wasn't until I had the honour of having a cup of tea and a bowl of rice in the house of the chief of the village that I understood why my questions were misguided. Posing him the same question, he took me outside. 'How much do you think my house is worth?' he asked.
 
It was a big house by Malawian standards with a large sitting room and at least five or six other rooms. Equating this to my experience of houses in Mzuzu and reducing the urban premium I supposed was placed on these dwellings, I suggested the figure of around K250,000 (£1,200).

'Ok,' he said. 'Now tell me who you think would have the money and the want to buy it. And why would someone not just build another house anywhere here,' he said gesturing the across the stunning view of undeveloped land in the many miles around.

It made sense: what good is proof of property ownership if there's no one to buy it? According to the City Assembly of Mzuzu there isn't a single outstanding mortgage on any property in the city of 160,000 inhabitants.

One of my employees told me he bought the plot of land for his house in the city for K25,000 (£120) and built his house with almost no cost. When I asked him how much he thought it was worth now, he look baffled, it was not something he considered. To him, it wasn't an investment to sell.

The reality is that without buyers, the houses are worth nothing and perhaps property ownership is not as relevant in rural Malawi as I originally thought. In the city the odd buyer may come along and properties do appear to change hands but in rural Malawi, that isn't the case - and with a strong urban pull, it's difficult to see that changing any time soon.