The Alliance for Social Equity and Public Accountability has entreated government to take a critical look at the rent and housing regime in the country.
Executive Director of ASEPA, Mensah Thompson, said government has failed to reconsider laws governing housing sector.
In a statement, he explained government seems to have neglected the housing sector, as rent and housing suffer the most.
Moreover, he stated that political twists to most government housing programs have neglected the housing legal and regulatory regimes
“The Housing sector is one of the many areas which has suffered successive Government’s neglect.
As a result, he stated that the lack of favourable and non-enforcement of existing laws have affected access to housing.
“We have called for the strict enforcement of the maximum 6 months’ rent advance law and yet land and property owners still demand 2 to 3 years advance payment from Ghanaians in total contravention of the law. A quick scan at the property market now shows at least 60-70% of most properties either for rent or for sale with prices quoted in dollars, also a clear violation of the law.
“A comprehensive housing regulatory proposal would be developed and sent to the Minister for Works and Housing for Consideration”.
Exorbitant Agent’s fees
He stated that service cost between agents buyers and sellers shouldn’t be borne by just one party.
“Property Agents are still exorbitantly charging 10% from property buyers and rent seekers. We have called for a policy to share the agent cost between the buyers and sellers of the property”.
For instance, rent control agency, he explained should be lifted to an authority status with more powers. This, Mr. Thompson, said will enforce rent and property laws.
Solutions to help resolve issues in the housing sector
To achieve sanity in the sector, he said government should reconsider the cost of building materials and reductions in taxes.
Also, tax rebates to develop affordable housing units and stability in the exchange rate, he said, will help resolve current housing deficiencies. This, will similarly help protect property owners and their investments.
Mr Thompson urged government to place special emphasis on construction education and capacity building of Ghanaian contractors. Construction workers, he insisted, will help reduce the importation of construction labour from neighbouring countries.
He added that these countries come at a great cost to developers. Ultimately, this translates into high properties rates on the market.
“A comprehensive housing regulatory proposal would be develop and sent to the Minister for Works and Housing for Consideration”.
Government to provide rent loans
Vice President, Dr. Mahamadu Bawumia in August 2020, announced the provision of low-interest loans for young people to rent affordable homes.
This, he said will be done through the new National Rental Assistance scheme.
He intimated that, the scheme will start off with a seed amount of GH¢100 million from government and in partnership with the private sector.
