Ghana’s rental housing system is in crisis, placing a severe financial burden on millions of citizens, especially the youth, low-income earners, and vulnerable groups.
The high cost of rent, weak enforcement of rent regulations, and an unregulated market have created an environment where tenants are at the mercy of landlords who impose arbitrary rent increases and demand excessive advance payments.
This pressing issue has caught the attention of Hon. Eric Edem Agbana, Member of Parliament for Ketu North, who has called for urgent and bold interventions to reform the rent system and restore fairness to Ghana’s housing sector.
The cost of rent in major cities such as Accra, Kumasi, Tema, Ho, and Takoradi has escalated beyond the reach of the ordinary Ghanaian.
According to Hon. Edem Agbana, landlords often unilaterally increase rent without justification, forcing tenants to either vacate or comply with exploitative demands.
He bemoaned the situation where those who cannot afford the high cost of rent are often evicted in a manner that strips them of their dignity.
“It is not surprising that when I conducted a survey on a social media platform called X, formally Twitter, The rent regime was identified by most Ghanaians as their number one challenge in the country. It is therefore imperative that we act with urgency to discuss this challenge and poffer sustainable solutions”.
Hon. Eric Edem Agbana, MP for Ketu North
The Ketu North MP further disclosed that the housing deficit in Ghana currently stands at over two million units, with demand far exceeding supply.
This shortage forces many into overcrowded and substandard living conditions, exacerbating the already dire situation.
The existing Rent Act, which prohibits landlords from demanding more than six months’ rent in advance, according to the Ketu MP is largely ineffective due to weak enforcement.
He emphasized that despite this legal provision, it is common for landlords to demand two to three years’ rent upfront, a clear violation of the law.
According to him, many tenants comply with these illegal demands because of the stark power imbalance between landlords and renters, and because the authorities responsible for enforcing rent laws have been largely inactive.
Re-introduction of Rent Bill, 2023
Thus, Hon. Agbana urged Parliament to urgently revisit the Rent Bill that was introduced to the House in March 2023.
He believes this is a crucial step in addressing Ghana’s rent crisis. He also emphasized that President John Dramani Mahama, in his campaign for the 2024 elections, had promised significant rent reforms, making it imperative for policymakers to follow through on these commitments.
Without a functional regulatory framework, landlords have been able to set arbitrary rental prices, revise rents without prior notice, and unfairly evict tenants, worsening the already dire situation.
A major contributor to the crisis is Ghana’s ineffective rent control system. Hon. Edem Agbana pointed out that the Rent Control Department lacks the authority and resources to enforce existing laws, leaving tenants without proper protection.
Limited access to mortgage facilities further compounds the problem, making homeownership unattainable for many Ghanaians who are forced to remain in rental accommodations indefinitely.
In addition, uncoordinated government housing policies have failed to address the needs of citizens, while the high cost of building materials has driven up construction costs, discouraging private sector investment in affordable housing.
Calls for Urgent Action
To address these issues, Hon. Edem Agbana called for a complete review and enforcement of the Rent Act.
He urged the government to introduce standardized residential housing policies and enforce quality control in the built environment to protect tenants from substandard housing.
He also proposes restructuring the Rent Control Department into a Ghana Rent Authority, which would have the resources and autonomy to regulate the sector effectively.
This authority would be responsible for resolving disputes, setting rent standards, and ensuring that landlords adhere to fair housing practices.
Another critical solution is the establishment of a National Rent Assistance Scheme, which according to Hon. Edem Agban is also outlined in the NDC’s 2024 manifesto.
This initiative would provide rent-advance loans to low-income earners, ensuring that they can afford decent housing without the burden of paying large sums upfront.
Hon. Agbana illustrated the urgency of this intervention by presenting the case of a young national service personnel from Penny Tamekope who is posted to the DVLA head office in Accra.
“With a compulsory national service allowance of GHS 715 per month, how can she afford to pay GHS 36,000 in rent advance for two years when a single room costs an average of GHS 1,500 per month? This is the reality many young people face, and without immediate government intervention, the situation will continue to deteriorate”.
Hon. Eric Edem Agbana, MP for Ketu North
To further address the crisis, massive investment in affordable housing is needed. The government must work closely with the private sector to construct affordable housing units, particularly in urban centres where rent is highest.
This will significantly reduce the housing deficit and provide more options for low- and middle-income earners. Additionally, there is an urgent need for a new rent pricing framework to prevent landlords from continuously increasing rent arbitrarily.
Encouraging private sector investment in affordable housing through tax incentives is another critical measure that must be implemented.
Developers who invest in affordable rental units should be granted tax relief to make housing projects more financially viable.
By providing these incentives, the government can create a more attractive business environment for investors and ultimately increase the supply of affordable housing.
The urgency of rent reform in Ghana cannot be overstated. The current system is unsustainable, and without decisive action, millions of Ghanaians will continue to struggle with high rental costs and exploitative landlord practices.
Hon. Agbana’s call for reform provides a clear and practical roadmap for addressing the crisis, and it is now up to the government and policymakers to act.
Parliament must prioritize rent reform by passing and implementing comprehensive policies that protect tenants, regulate rental prices, and increase access to affordable housing.
Ghanaians deserve a fair and transparent rental system that upholds their dignity and ensures that everyone has access to decent and affordable accommodation.
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