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General News of Sunday, 19 August 2018

Source: Myjoyonline.com

Government to build more houses to reduce rent advance – Atta Akyea

Works and Housing Minister, Samuel Atta Akyea says the government is working to review the rent act as part of efforts to make houses more affordable.

He said the current housing deficit with its attendant rent system is worrying and the government is taking steps to resolve it.

The new rent act, he noted will reduce the long years of rent landlords demand from tenants.

“The whole point of the matter is that we have a deficit of supply of housing units. If there is more, then you cannot hike the prices.

“So if you have more houses, the tendency of taking exorbitant rent advance will come down considerably and this is what the ministry is trying to do,” he added.

He is confident that once the law comes into force, all landlords will be compelled to do the right thing which will bring relief to tenants.

He also said the government is working to build more affordable houses.

Reports as of 2016, indicate that Ghana housing sector is in short supply of 1.7 million units, and is projected to climb to two million by this year.

This has made landlords incredibly powerful, therefore dictating their own terms of rental agreements which desperate tenants have no choice but to agree to.

If the new law gets passed, it will bring relief for many tenants who have been unfairly treated by their landlords, some of which include wrongful termination of contracts, unlawful evictions and outrageous demands of rent advance.

For most tenants, coming up with one-year and two-year rent advances requires loans and funds from friends and family.

A monthly or at most six months monthly rent payment will therefore work better, especially with salaried workers.