{"id":122070,"date":"2021-07-29T18:37:04","date_gmt":"2021-07-29T13:07:04","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=122070"},"modified":"2021-07-29T18:37:04","modified_gmt":"2021-07-29T13:07:04","slug":"the-housing-boost","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/the-housing-boost\/","title":{"rendered":"The Housing Boost"},"content":{"rendered":"<p><strong>Source: <\/strong><a href=\"https:\/\/indianexpress.com\/article\/opinion\/columns\/model-tenancy-act-homeowners-tenants-7427337\/\"><strong>Indian Express<\/strong><\/a><\/p>\n<p><strong>Synopsis<\/strong>: The Model Tenancy Act can benefit homeowners and tenants.<\/p>\n<h5><strong>Introduction:<\/strong><\/h5>\n<p>India is set to <strong>double its urban population between 2018 and 2030.\u00a0<\/strong>By 2028, New Delhi would become the most populous city on the planet. Thus, large-scale migration to urban centers in India is bound to create pressure on housing markets.<\/p>\n<p>As per the Report of the <strong>Technical Group (TG-12) on Estimation of Urban Housing Shortage<\/strong> (2012), the economically weaker sections and low-income groups currently face 96 percent of the total housing shortage in India.<\/p>\n<h5><strong>Policy bottlenecks<\/strong>:<\/h5>\n<p><strong>First,<\/strong> homeowners prefer to keep their homes vacant instead of renting them out due to the existence of <strong>pro-tenant rent control laws<\/strong>.\u00a0As per the National Sample Survey Organization\u2019s data of 2012, 71 percent of households living in rented accommodations did not have a written contract.<\/p>\n<p><strong>Second,<\/strong> <strong>judicial delays in case of disputes<\/strong>.\u00a0In India, an average commercial civil suit was disposed of in 1,445 days in a district court, as per World Bank\u2019s Doing Business Report in 2018.<\/p>\n<h5><strong>How the Model Tenancy Act, 2021 can significantly boost India\u2019s rental markets?<\/strong><\/h5>\n<ul>\n<li>First, the Act calls for the <strong>repeal of existing rent control laws<\/strong> in all states and Union territories.\u00a0It also seeks to remove monetary ceilings on the rent amount.<\/li>\n<li>Second, the Act <strong>addresses various challenges<\/strong> such as the fear of illegal occupation\/eviction, arbitrary security deposit and structural maintenance-related demands, and high transaction and legal costs.<\/li>\n<li>Third, the Act facilitates special fast-track courts to settle rental disputes.\u00a0It envisions <strong>improved contract enforcement<\/strong> through a three-tier dispute redressal mechanism.\u00a0The adjudicatory bodies at the second and third-tier of appeal are required to dispose of cases within a 60-day timeline.<\/li>\n<li>Fourth, the private sector can enter into affordable rental housing markets through models like <strong>\u201cBuild to Rent\u201d and \u201cRent to Own\u201d.\u00a0<\/strong>Under the <strong>\u201cBuild to Rent\u201d model,<\/strong> private residential properties can serve as a reliable option for prospective tenants.\u00a0Under the <strong>\u201cRent to Own\u201d model,<\/strong> the owner agrees to sell the house to the tenant in the future and the initial contract contains the necessary clauses to affect the future transfer of ownership.\u00a0This model is popular in the United Kingdom, Middle East, and Africa.<\/li>\n<li>Lastly, the Model Tenancy Act, 2021 provides a promising framework for tenancy agreements.\u00a0The <strong>meagre rents under the rent control laws<\/strong> are the reason behind many housing units and chawls.\u00a0This points to the need for a separate mechanism beyond the Model Tenancy Act that ensures the provision of safe and good quality rental units for tenants.<\/li>\n<\/ul>\n<p>The states should use this opportunity to unlock the economic value of vacant housing and increase access to good-quality housing.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source: Indian Express Synopsis: The Model Tenancy Act can benefit homeowners and tenants. Introduction: India is set to double its urban population between 2018 and 2030.\u00a0By 2028, New Delhi would become the most populous city on the planet. Thus, large-scale migration to urban centers in India is bound to create pressure on housing markets. As&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/the-housing-boost\/\">Continue reading <span class=\"screen-reader-text\">The Housing Boost<\/span><\/a><\/p>\n","protected":false},"author":10316,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216],"class_list":["post-122070","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704917101},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/122070","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10316"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=122070"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/122070\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=122070"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=122070"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=122070"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}