Rent Regime and Reforms: Edem Agbana delivers first formal statement on the floor of Parliament

**STATEMENT ON THE FLOOR OF PARLIAMENT BY**

**HON. ERIC EDEM AGRANA, MEMBER OF PARLIAMENT FOR KETU NORTH CONSTITUENCY, ON THE RENT REGIME AND THE URGENT NEED FOR REFORMS**

1. Mr. Speaker, I am grateful for the opportunity to make my first formal statement since joining this House barely a month ago.

2. Mr. Speaker, I rise today to draw the attention of this august House to the dire state of Ghana’s rent regime, a system that has become a major source of frustration and hardship for millions of Ghanaians, particularly the youth, low-income earners, and vulnerable groups. The cost of rent in Ghana is alarmingly high, access to affordable housing is limited, and the regulatory framework governing rent payments is largely ineffective. These challenges demand urgent and bold interventions if we are to provide decent living conditions for our people.

3. Mr. Speaker, it is not surprising that when I conducted a survey on a social media platform called X, formerly Twitter, the rent regime was identified by most respondents as their number one challenge in Ghana. It is therefore imperative that we act with urgency, discuss this challenge, and proffer sustainable solutions.

4. Mr. Speaker, let me begin by highlighting the challenges associated with Ghana’s rent regime.

**Challenges and Realities**

5. Mr. Speaker, Exorbitant Rent Costs: In our major cities, particularly Accra, Kumasi, Ho, Tema, and Takoradi, rent prices are skyrocketing beyond the reach of ordinary citizens. Some landlords unilaterally increase rent without justification, and tenants who cannot afford the new rates are evicted in an undignified manner. This places an unbearable financial burden on tenants.

6. Mr. Speaker, Inadequate Housing Supply: Ghana faces a housing deficit of over two million units, with demand far exceeding supply. The lack of affordable housing forces many citizens into overcrowded and substandard living conditions.

7. Mr. Speaker, Weak Enforcement of Rent Laws: While the law stipulates that landlords should not demand more than six months’ rent in advance, enforcement is virtually nonexistent. It is common for landlords to demand two to three years’ rent in advance, in clear violation of the Rent Act, 1963 (Act 220). Many tenants are forced to comply with these arbitrary demands due to the power imbalance between landlords and tenants.

8. Mr. Speaker, it is crucial that we revisit the Rent Bill which was laid before Parliament in March 2023. This should serve as a wake-up call to urgently address the rent crisis facing the people of this country. This is important because President Mahama also promised same in the run-up to the 2024 general elections.

9. Mr. Speaker, Unregulated and Exploitative Rental Market: The absence of a clear rent control system has allowed landlords to charge arbitrary rates, revise rents without justification, and unfairly evict tenants.

**Causes of the Crisis**

10. Mr. Speaker, Housing Deficit and Poor Urban Planning: The failure of successive governments to prioritize affordable housing projects has widened the gap between supply and demand.

11. Mr. Speaker, Ineffective Rent Control System: The Rent Control Department lacks the resources and enforcement power to regulate the sector effectively.

12. Mr. Speaker, Limited Access to Mortgage and Housing Finance: Many Ghanaians do not qualify for mortgage loans due to low wages and high interest rates.

13. Mr. Speaker, Uncoordinated Government Housing Policies: Over the years, various housing schemes have been initiated but poorly executed, leading to abandoned projects and wasted resources.

14. Mr. Speaker, High Cost of Building Materials: The rising prices of cement, iron rods, and other construction materials make housing development expensive, discouraging investment in affordable rental units.

**Recommendations and Policy Proposals for Urgent Action**

15. Mr. Speaker, Immediate Review and Enforcement of the Rent Act: As outlined under section 4.2.6 of the NDC Resetting Ghana 2024 Manifesto, the government must review the Rent Act to introduce standardization in residential housing and enforce quality control in the built environment.

16. Mr. Speaker, Restructuring of the Rent Control Department into a Ghana Rent Authority: This new authority must be well-resourced and given the necessary support to ensure that the interests of both tenants and landlords are balanced.

17. Mr. Speaker, Establishment of a National Rent Assistance Scheme: Again, this is one of the solutions outlined in the NDC manifesto. The state must support low-income earners by providing a rent advance loan scheme to enable them to afford decent housing without struggling to pay lump sums upfront.

- Mr. Speaker, imagine the plight of a young graduate from Penyi Tamekorpe, posted to the DVLA head office in Accra for her national service. How can she raise, on average, 36,000 Ghana Cedis to pay a two-year rent advance for a single room that costs 1,500 Ghana Cedis per month when her compulsory national service allowance is only 715 Ghana Cedis per month?

18. Mr. Speaker, Massive Investment in Affordable Housing: The government must collaborate with private developers to build affordable housing units across the country, particularly in urban centers where rent is most expensive. This will significantly reduce the housing deficit.

19. Mr. Speaker, Regulation of Rent Pricing: A new rent pricing framework must be introduced to prevent landlords from arbitrarily increasing rent.

20. Mr. Speaker, Tax Incentives for Affordable Housing Developers: Developers who invest in affordable rental units should be granted tax incentives to encourage more housing projects.

21. Mr. Speaker, Reduction in Building Material Costs: The government must explore policies to stabilize the prices of essential building materials to make housing construction more affordable.

22. Mr. Speaker, Introduction of a Rent Tribunal System: A rent tribunal system should be introduced to provide quick and fair resolution of rent disputes. This can be linked to the establishment of regional tribunals, as articulated by the Attorney General and Minister for Justice when he appeared before the Appointments Committee of Parliament a few weeks ago.

**Conclusion**

23. Right Honourable Speaker, the current rent situation in Ghana is unsustainable. It is an issue of national urgency that demands immediate and bold interventions. The citizens of this country deserve to live in dignity, and as leaders, it is our responsibility to ensure that housing, a basic necessity, is accessible and affordable for all.

- I therefore humbly call on this Honourable House to act now and protect ordinary Ghanaians from the burden of excessive rent costs.

24. Mr. Speaker, once again, I thank you for the opportunity to make this statement.