Housing development in Tanzania is by large extent done by private sector. There have been Government initiatives to develop housing sector since independence. Such attempts include establishment of National Housing Corporation in 1962. This was responsible for combating housing shortages in urban centres.

The defunct Tanzania Housing Bank was established in 1972 to provide loans for housing construction and rehabilitation of the houses in upgraded squatter settlements.

In recent years Government has being playing a facilitation role by creating an enabling environment for private sector, individuals and other institutions to take part in housing development.

Housing development is guided by the Settlement development policy of 2000. In the implementation of the Policy the department has prepared National Mortgage facility which was recently approved. The department is also responsible for overseeing quality housing development in the country in collaboration with the UN-HABITAT.

In collaboration with the Ministry of finance a report that will facilitate the establishment of housing credit facilities has been prepared. It is expected that institutions like PPF, NSSF and others will be mobilized to provide soft housing loans to enable low income earner to build quality houses.

The Ministry through this section in collaboration with the National Housing Corporation is reviewing Act number 2 of 1990 to enable NHC to collect revenue from the existing housing stock to accumulate capital in order to increase efficiency in housing development.

The government is planning to strengthen this section to a full flagged department and establish offices in all local authorities. Also the government is planning to establish housing construction force and housing cooperatives in all districts to speed up quality housing provision in the country.