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Realestate

Indian rental housing policies for the betterment of rental society

by Michael George April 14, 2021
written by Michael George April 14, 2021
Trying to Price Your House? Here Are 5 Things to Consider

Indian society has struggled a lot with the challenges of inadequate housing due to rapid urbanization and lower urban poverty lines. All the government policies are unable to fill the gap, although they are focusing majorly on the ownership of housing and avoiding rental housing. In 2015 they drafted the national urban rental housing policy and the 2019 model tenancy act solved this problem. Although rental housing is essential in metropolitan cities, the Indian government has to focus on the laws and order strictly. Rent agreement online or offline is a must due to the growing rental housing issues because of various reasons.

Tackling with the rental housing crisis: analyzing current policies

Despite having numerous platforms over the internet for post property on rent, India is still struggling to find an adequate home for some lower-middle-class people and the people who are weaker financially. But, the government are trying to solve some issues of urban rental and regressive rental laws through different policy initiatives:

  • The 2015 draft NURHP, inaugurated to provide thrust to the creation of urban rental housing
  • The 2019 draft MTA, which directs the current rent laws impartial.

National urban rental housing policy (NURHP)

The draft issued by the government in 2015, which defines rental housing as “a space occupied by anyone other than the owner and the tenant pay certain fixed rental periodically to the owner”. This policy dividend the rental housing into five major categories:

  1. Informal or formal: informal rental housing there is a proper rental agreement between both parties but in informal rental housing there is no such agreement.
  2. Market-driven: any individual owner, private firm sponsor the construction and management of any housing unit without any help from the government body.
  3. Public: rental spaces owned by the government, local authorities and its entities.
  4. Need-based: catering different group of people who can earn but could afford the rent
  5. Social: rent is below market rates to make it affordable to the weaker section of society, it could be owned by the government, public sector, pr charitable institute.

The major objective of the NURHP policy

the rental housing market in India is not good due to the low quality of housing constructed for rent, holding unoccupied space just because of the fear of losing control over it, etc. some of the broad objectives are:

  • To uplift the requirement based rental housing for specific target groups.
  • To develop adequate rental housing spaces by helping different rental housing committees.
  • To create shelter facilities for the lower category group of the homeless population.
  • To build the flyover between public and private partnerships.

Model tenancy act (MTA)

In 2019, this law came into existence to catalyse rental housing as the present Indian laws of rental housing society did not address all the issues between the owner and the tenant. It helps to boost the housing stock to a certain level that now people do not have to spend a huge amount of their income on rent.

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