Housing deficit inhibiting government’s implementation of 6 months rent advance, Rent Act - Asenso- Boakye

The Minister for Works and Housing, Francis Asenso-Boakye has indicated that the deficit in housing accompanied by its numerous challenges, is making it difficult for the Government to implement the 6 months rent advance stipulated under the Rent Act, 1960(Act 2020) and the Rent Control Law, 1986 (PNDC L 138).

He added that the two old Laws have become extremely difficult to apply and enforce in the light of these numerous challenges thus the need for the new Rent Bill, 2022.

“The deficit is creating imbalance, demand and supply imbalance, therefore, it is inhibiting government’s effort in implementing the current rent Act.”

Speaking during question time in Parliament on Wednesday, June 1, the minister further noted that because of the deficit, landLords have been placed in an opportunistic and advantageous position and thus capitalizing on the situation.

“Because of the deficit in the rent and housing, it puts the landlords in an advantageous position thus they are able to dictate what should be the duration of the rent advance. For instance, because it puts them at an advantage, it makes them conduct themselves in an opportunistic manner. 

Therefore if I give you six months and you tell me that you can’t afford, there are hosts of others who will come and see me behind the scene and take the rent to say in three years so that is what I'm talking about the market failure and as a result, we all need to come together and help with the review of the Rent Act to stand the test of time.”

National Rent Assistance Scheme

He mentioned that the Government is about to implement the National Rent assistance scheme and which is a scheme that will provide some sort of Rent advance to would-be renters who are on payroll so that they can pay the rent back over a period of time on a monthly basis.

Delay of new Rent Bill

The Speaker of Parliament, Alban S.K.Bagbin was not happy about the delay in the presentation of the new rent Bill to the House and thus called on the Minister to expedite action on it.

“Law making is not that of the Executive. It is of Parliament. Policy formulation and formation starts from the Executive but when its to be translated to law, it ends up with Parliament so all the stakeholders you are inviting, will also be invited to the house again so there is no need for that kind of delay in processing bills at the level of the Executive so please I want to urge you.”

Background

The Rent Bill 2022, seeks to consolidate the law on rent, reform the existing enactment on rent, remove housing constraints, offer incentives for private sector investments in housing, and maintain the protection of low income and vulnerable from abuse and arbitrary actions. 

The Rent Act, 1963 (Act 2020), has outlived its relevance, to the current population growth, housing availability, housing maintenance, the trend in technology advancement in the rental market, and other current issues. 

Also, the intervening law, the Rent Control Law, 1986 (PNDC L 138) failed to address the problems of rental accommodation, because landlords were constrained in the application of rent to reflect inflationary trends.