Vice President Dr Mahamadou Bawumia has stated governments intentions to enforce the current rent Act through the National Rental Assistance Scheme. The Rent Act 220 which is undergoing review stipulates that property owners can charge no more than six-months’ advance rent, with subsequent rent payments due every six months.But the law has been flouted for many years
The NPP in its 2020 manifesto on housing aims to address the challenge by establishing a National Rental Assistance Scheme (NRAS) to be partnered by the private sector. The scheme according to government will advance low-interest loans to eligible Ghanaians to enable them to pay their rent advance. And to ensure the sustainability of the scheme, the loans will be insured, and repayment made on a monthly basis to match the tenor of the rent.
Speaking to Kwami Sefa Kayi on kokroko Tuesday, Dr Bawumia said government will collect the digital address of all landlords to be able to monitor them and ensure they abide by the law. Dr Bawumia says the policy was arrived at after studying the model of many advanced economies like the United states where citizens pay a month deposit and subsequently make monthly rent payments
Some have questioned the sustainability of such a policy and suggested the solution instead is on the Supply side. They believe Increasing supply of rental housing to bring rental rates down is better than subsidizing or assisting renters to enable them afford high rental and deposit rates occasioned by housing supply shortages. They argue that a permanent way out is for government to focus on Supply side economics to correct a number of market imperfections that mitigate against growth, dumping down on job creation and income growth