New Delhi, NFAPost: The Union Cabinet, chaired by Prime Minister Shri Narendra Modi has approved the Model Tenancy Act for circulation to all States / Union Territories for adaptation by way of enacting fresh legislation or amending existing rental laws suitably.
According to a government release, the act will help overhaul the legal framework with respect to rental housing across the country, which would help spur its overall growth.
The Model Tenancy Act aims at creating a vibrant, sustainable, and inclusive rental housing market in the country. It will enable the creation of adequate rental housing stock for all the income groups thereby addressing the issue of homelessness.
Model Tenancy Act will enable institutionalisation of rental housing by gradually shifting it towards the formal market.
The Model Tenancy Act will facilitate the unlocking of vacant houses for rental housing purposes. It is expected to give a fillip to private participation in rental housing as a business model for addressing the huge housing shortage.
Commenting on the development, ANAROCK Property Consultants Chairman Anuj Puri said at long last, the Union Cabinet has approved the long-pending Model Tenancy Act.
“India’s States and Union Territories can now accordingly adapt and enact new laws or amend their current rental laws to dovetail with the Act. The Model Tenancy Act will help bridge the trust deficit between tenants and landlords by clearly delineating their obligations and will eventually help unlock vacant houses across the country,” said Ajuj Puri.
He also said to ensure speedy redressal of disputes, the Act also proposes to establish separate Rent Court and Rent Tribunal in every state/UTs to hear appeals for matters connected to rental housing.
Anuj Puri said this Act can fuel the rental housing supply pipeline by attracting more investors, and more rental housing stock will help students, working professionals and migrant populations to find urban accommodation (especially in COVID-19-like exigencies).
“Once implemented in all fairness across states, it will go a long way in formalising and stabilising the rental market. It would also revive the fortunes of not just the rental market but the housing sector at large. However, even while the Model Tenancy Act is a step in the right direction (providing a clear roadmap for states to follow) it will remain to be seen to what extent the states will toe the central government’s line,” said Anuj Puri.