The Ghanaian government, through the Ministry of Works and Housing, has announced the establishment of the National Rental Assistance Scheme (NRAS) as part of efforts to reduce the burden of hikes associated with rental accommodation as well as increase access to safe and affordable rental housing, especially for low income earning Ghanaians.

Under the scheme, eligible Ghanaians will be able to apply for low-interest loans to enable them to pay rent in advance. An affordability assessment will be conducted for each application before approval.

The initial roll out, with a seed funding of GHS30m, will take place in the Greater Accra, Ashanti, Western, Eastern, Bono East and Northern Regions, where data from the Ghana Statistical Service (GSS) indicate renters have the greatest challenge with rental accommodation.

Speaking at the launch of the NRAS in Accra on Tuesday, January 31, 2023, Vice President Mahamudu Bawumia said the above 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 were often marred by defaulters, the NRAS is in collaboration with private investors who would not 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 change 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 strides 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, urbanisation, housing availability, and general trends,” Dr Bawumia said.

QUALIFICATION

Applicants to the Scheme must be Ghanaian, possess a valid Ghana Card, be at least 18 years old, have verifiable employment and earn income evidenced in a bank or mobile money statement. Also, the rent payable must not exceed 30 per cent of the household income. Parents can also guarantee for their children.

The results or status of applications will be released within 5-10 days after the applications are released, according to the managers of the Scheme, Rent Masters. Additional information can be found at www.nras.gov.gh