The article 25 of the Universal Declaration of Human Rights begins with `everyone has the right to a standard of living adequate for the health and wellbeing of himself and his family, including food, clothing, housing and medical care and necessary social services’ (UN,1948). The Vancouver Declaration on Human Settlements of 1976 further states that ‘adequate shelter and services are a basic human right which places an obligation on governments to ensure their attainment by all people, beginning with direct assistance to the least advantaged through guided programmes of self-help and community action.’

An adequate shelter is not only a human right but also the base for human relationships, the free development of the individual and for the playing of an active role in the social and cultural life of the community. Housing investment typically comprises 2-8% of the Growth National Product (GNP) and 10-30% of gross capital formation in developing countries (World Bank, 1993). As an asset, it accounts for between 20-50% of the reproducible wealth in most countries. It is a private space with a public face, which can be seen as a symbolic extension of self. Being a material asset and a psychosocial symbol of achieved status, it affects how people see themselves and are seen by others. It comprises of a number of facilities, services and utilities which link the individual and family to the community, and the community to the region. In fact, housing can also be considered as the residential environment, neighborhood, micro-district or the physical structure including all necessary services, facilities, equipment and devices needed for the physical health and social well being of the family and individual.

In the case of Nepal, though urbanization is just 19% at present, population growth in the urban centres is as high as 6.6% per annum, three times higher than the average national growth rate of 2.3% per annum. The five cities of the Kathmandu valley alone accommodate about 30.9% of total urban population of Nepal. This increased urbanization along with gradual shift in economic base from agriculture to commerce and service including changing lifestyles of city dwellers has not only created a huge demand of housing, infrastructure provision, social and emergency services but also transformed the form and mode of development of housing in the Kathmandu valley with numerous consequences.

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