President John Dramani Mahama has attributed the growing issue of excessive rent advance payments in Ghana to the country’s housing deficit.

He made the remarks during a public engagement on housing and sanitation in Accra on Thursday, March 19, 2026, where he outlined challenges facing households and proposed solutions to improve access to affordable housing.

He explained that the shortage of housing has created a situation in which private landlords take advantage of tenants by demanding rent advances that exceed the legally approved limit.

He noted that although the law caps rent advance at six months, both tenants and landlords often bypass rent control mechanisms and settle such arrangements privately.

According to him, tenants frequently agree to pay up to two years’ rent in advance due to the urgent need for accommodation and the fear of losing available options.

He stressed that the situation persists because of the widening gap between housing demand and supply.

The former President called for a national housing dialogue involving government, the private sector, and organised labour to develop a comprehensive social housing policy.

He emphasised that such a policy would provide affordable housing options for workers, either through mortgage schemes or rental arrangements at reasonable rates.

Mahama also pointed to successful housing models in countries such as Kenya, where large-scale housing projects have been implemented for public sector workers.

He further explained that previous mortgage systems in Ghana discouraged home ownership because they were tied to the US dollar, making repayment difficult due to currency fluctuations.

He added that the stability of the local currency is key to improving access to mortgages, noting that predictable depreciation would enable workers to plan and manage repayments more effectively.

He urged stakeholders to work together to maintain a stable economy, stressing that it would benefit both homeowners and prospective buyers.