The Government of Ghana has duly launched the National Rental Assistance Scheme as part of measures to provide decent accommodation for Ghanaians. The scheme is to be managed by a private sector property manager under the auspices of the Ministry of Works and Housing and other key stakeholders. It has been designed to make rental accommodation more accessible, affordable and convenient by taking away the unfair burden faced by lower income households and the youth across the country of multi-year rent advance payments demanded by landlords.
Ghanaians above the age of 18 with a valid national ID card and verifiable employment with an income, are eligible for a rent loan in five to ten working days under the scheme.
According to the scheme, the total rent amount will be paid directly to the prospective landlord of an applicant after all checks have been completed by the scheme to ensure an applicant's eligibility.
The applicant will in turn make a monthly payment to the National Rental Assistance Scheme with interest.
Applicants are expected to be legally evicted from the house or room if they default on the monthly payment arrangement.
The Scheme is expected to be rolled out across the country but will be piloted in six regions namely; Greater Accra, Ashanti, Western, Eastern, and Bono East and Northern Regions. Speaking at the launch in Accra on Tuesday, January 31, vice president Mahamudu Bawumia said the five regions were “selected for the pilot because they are where there is pressure on rent in the country.” Dr. Bawumia said, "unlike previous policies which are often marred by defaulters, the National Rental Assistance Scheme is in collaboration with private investors who wouldn’t want their investments to go down the drain and will use any means possible to retrieve their funds which will also eliminate any form of political interference."
He also disclosed that the government through the Ministry of Works and Housing has submitted a bill to Parliament seeking to replace the current rent law which was passed over five decades ago and has lost its relevance. “I am happy to inform you that the government has made significant efforts as far as the housing sector and renting management are concerned. Government acting through the Ministry of Works and Housing has submitted to Parliament for consideration and passage, a rent bill to replace the existing Rent Act of 1963 Act 220. The current Act was passed by Parliament 59 years ago and therefore its relevance has been outlived by the current population growth, urbanization, housing availability, and general trends.” The vice president further stressed that the passage of the rent bill will enhance the rental market in Ghana and give access to decent accommodation in the country.
"Additionally, the passage of this Act will enhance the rental market in Ghana and we have the bill in Parliament and when passed, it will enhance the service delivery of the Rent Control Office.”
Additional information can be found at www.nras.gov.gh.
This undue burden has partly been due to shortage of affordable housing as both government and private developers have been unable to construct enough of these types of housing to accommodate the growth and demand for these types of housing needs.
It is currently estimated that there exists a deficit of about 5 million rooms in Ghana as of December 2022; assuming each room is shared by 2 occupants. And this deficit is expected to get worse as the population grows and rural-urban migration continues.Based on these factors, National Rental Assistance Scheme was formed to offer rent relief to the ordinary Ghanaian renter; making it possible for rent payments to be made on a monthly basis as rent is mostly paid throughout the world.
