The Union Cabinet has approved the Model Tenancy Act. The government says this Act will provide an overhaul to the legal framework on rental housing and encourage private participation.
The government said the Model Tenancy Act is expected to give a fillip to private participation in rental housing as a business model for addressing the huge housing shortage. (Representational image) (Photo: India Today/Yasir Iqbal)
The Union Cabinet has approved the Model Tenancy Act that is aimed at overhauling the legal framework in regard to rental housing across the country.
Following the Cabinet decision on Wednesday, the government issued a statement saying the Act is expected to give a fillip to private participation in rental housing as a business model for addressing the huge housing shortage.
“The Union Cabinet, chaired by Prime Minister 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,” the statement said.
The government added that this Act would 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.
Apart from this, the government said this Act will “facilitate unlocking” of vacant houses for rental housing purposes. It added that it is expected to give a fillip to private participation in rental housing as a business model for addressing the huge housing shortage.
Speaking about the Model Tenancy Act, Union Minister for Housing and Urban Affairs Hardeep Singh Puri said the Act will provide overall regulatory framework to the rental housing sector.
“This will apply to future transactions. It would be a written agreement, with terms and conditions to be determined by the landlord and the tenant. Implementation of the Act will build confidence in the landlord,” he said.
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