Importance of Rental Housing in realizing the vision of Housing for All

GOVERNMENT OF INDIA

MINISTRY OF HOUSING AND URBAN AFFAIRS 

RAJYA SABHA

NEW RENTAL POLICY FOR RESOLVING HOUSING SHORTAGE

DR. AMAR PATNAIK 

Will the Minister of HOUSING AND URBAN AFFAIRS be pleased to state:

(a) whether a proposal is pending with Government to introduce a rental policy to alleviate the housing shortage;

(b) if so, the details thereof;

(c) whether the policy would impact rental prices in urban areas, the details thereof;

(d) whether the policy would negatively impact the rights of tenants, the details thereof; and

(e) the estimation of the number of rental properties that would become available through the implementation of this policy?

ANSWER

THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE 

MINISTRY OF HOUSING AND URBAN AFFAIRS

(SHRI HARDEEP SINGH PURI)

(a) to (e) Land and Colonization are State Subjects and States/ Union Territories  are governed by their respective laws. However, in order to meet urgent need of housing for migrant people and considering the importance of Rental Housing in realizing the vision of Housing for All, Ministry of Housing and Urban Affairs has prepared a draft Model Tenancy Act (MTA).

The draft MTA aims to balance the rights and interests of both the tenant and owner by regulating renting of premises in an efficient and transparent manner. MTA also proposes speedy dispute resolution mechanism to settle disputes between owner and tenant.

The draft MTA intends to ensure formalizing the informal segment of rental housing, unlock vacant properties, increase rental yields, remove exploitative practices, increase transparency and discipline, repose confidence of investors and promote entrepreneurship in the sector.

Draft MTA was shared with the States and Union Territories (UTs) seeking their views and was also placed on the website of the Ministry for public consultation. After approval of Union Cabinet, the draft MTA will be sent to States/UTs for adoption by way of enacting fresh legislation or amending existing rental laws suitably.

The Ministry of Housing and Urban Affairs does not maintain the data of the houses available for renting. However, on adoption of the MTA by the States, it is expected that more and more owners would be encouraged to let their vacant houses on rent.

Source : Rajya Sabha