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Friday, December 15, 2017

PMO to review TN Tenancy Act

C Shivakumar @ Chennai:
Prime Minister’s Office will be reviewing Tamil Nadu government’s draft to introduce Model Tenancy Act in the state.

After the state government has drafted the Tamil Nadu Regulation of Right and Responsibilities of Landlords and Tenants Rules – 2017, the housing secretary has been summoned by the Prime Minister's Office to discuss the implementation of Model Tenancy Act, 2017, according to official sources.

It is learnt that state housing secretaries of Maharashtra and Haryana are also being summoned to discuss the implementation of Model Tenancy Act in their states.

The Model Tenancy Act became necessary as Rent control Acts of states have become restrictive and it needs to be overhauled. According to government statistics, rental housing was 54 per cent in 1961 but declined to 27 per cent in 2011.

Even the Niti Aayog has recommended rental housing to achieve the goal of housing of all. Sources believe that there are 11 million houses which are lying vacant in urban areas and this could be unlocked to brifge the housing shortage.

In Tamil Nadu alone, the vacant houses account for six percent of the 11 million vacant households. The state faces a shortage of 1.5 million homes.

As per the Model Tenancy Act, no premises can be rented or let out except by an agreement in writing which shall be informed to the Rent authority by the land owner and tenant jointly. This comes after National Sample Survey Office in in its observation in 2012 has stated 71 per cent of households living in rental accommodation don’t have any agreement.

The Union government hopes that the implementation of the new tenancy act will promote entrepreneurial opportunities giving a fillip to construction of rental housing units across the country.

-- A total of 11.09 million homes are vacant in urban areas
-- About 27pc or urban residents of the country live on rent.
--- Housing loans to low income segments decreasing every year(Rs 2 lakh-- from 2pc to 1pc; upto Rs 5 lakh-- from 14pc to 9pc upto rs 10 lakh from 34pc to 26pc)
-- Urban residents pay 6.2 pc of total expenditure on house rent
--- A total of 25pc hired dwelling units are informal and 5pc are formal

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