Union Cabinet approves Model Tenancy Act to create ‘inclusive rental housing market’

NEW DELHI: The Union Cabinet on Wednesday approved the Model Tenancy Act to help overhaul the rental housing legal framework across the country and help spur its overall growth.
In an official statement after the meeting, the Cabinet said that the Act will facilitate unlocking of vacant houses for rental housing purposes.
It is also expected to give a fillip to private participation in rental housing as a business model for addressing the huge housing shortage.
The cabinet, chaired by Prime Minister Narendra Modi, stated that the Act will be in “circulation to all states/Union Territories for adaptation by the way of enacting fresh legislation or amending existing rental laws suitably.”
The Tenancy Act will also enable institutionalisation of rental housing by gradually shifting it towards the formal market.
“The Model Tenancy Act aims at creating a vibrant, sustainable and inclusive rental housing market in the country. It will enable creation of adequate rental housing stock for all the income groups thereby addressing the issue of homelessness,” the statement said.
It also plans to enable creation of adequate rental housing stock for all the income groups.
Union Minister for housing and urban affairs Hardeep Singh Puri said: “Model Tenancy Act provides model for urban and rural properties and template for residential and commercial properties. Will apply to future transactions and take people from informal to specific contract arrangement between landlord and tenant.”
(With inputs from agencies)

Leave a Reply

Your email address will not be published. Required fields are marked *