Government clarifies feasibility concerns raised over rent assistance scheme

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Wed, 1 Feb 2023 Source: www.ghanaweb.com

Government, through the Ministry of Works and Housing, has clarified some concerns raised by the public over its rental assistance scheme which was launched on January 31, 2023.

The concerns were mainly about the involvement of a private entity, i.e Rent Masters, in the scheme.

But a statement from the ministry on February 1, explained that the partnership was to:

• Ensure due process and value for money for the sustainability of the Scheme

• Ensure accountability and protect the public purse

• Exploit the experience and working business model of Rent Masters Ghana Ltd to minimize risk

• Promote private sector engagement in providing solutions to housing challenges

The Minister of Works and Housing, Francis Asenso Boakye, at the launch of the National Rent Assistance Scheme, revealed that the government has committed about GH¢30 million to solve rent problems.

According to him, the scheme is to provide low-interest loans to eligible Ghanaians to enable them to pay rent advances, which will be repaid on a monthly basis to match the tenure of the rent.

He said “Currently there is no mechanism by which the youth or eligible households can be supported to access a decent rental accommodation and to effectively protect them from exploitation. For this reason, it has become imperative to address short to medium-term market failures the rental segment is where landlords demand two or more years of rent advance and also streamline the processes for accessing rental accommodation for lower-income households towards the improvement of the quality of rental accommodation.

“Government has made a commitment of GH¢30 million to solving this problem and the initial state will cover the Greater Accra, Ashanti, Western, Eastern, Bono East, and Northern region,” he added.


Source: www.ghanaweb.com
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