There has been so much talk about the rent bill in recent times. However, is that the right way to go? can the rent bill solve the problem of landlords exploiting tenants?
According to the 2010 population and housing census, Ghana needs a projected 100,000 housing units to meet the current housing deficit. Similarly, according to ISSER (2013), the country’s overall annual housing deficit is between 70,000 and 120,000 housing units. currently only 30 – 35 percent of the annual estimated housing requirements is being supplied (ISSER 2013).
In the instance where demand for houses fall short of supply of houses; what happens? Basic economics stipulates that when demand exceeds supply, prices are sure to sour up. Thus with an imposition of price ceiling on rent in Ghana, there is still the likelihood for prices to still go up.
This because, assuming the government passes a law that prevents Landlord from requesting for more than five years advance rent payment from a would-be tenant; the huge housing deficit may result in about more that ten (10) would-be tenants to bid for that available house. Thus, secretly, would-be tenants who are comparatively financially sound may offer to give more than the five months advance rent payment stipulated by law.
The best approach is for government in solving rent issues in Ghana is to not only pass the rent bill but to also invest in the housing sector in Ghana by building more affordable houses so as to reduce the huge housing deficit in Ghana.
The search team
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