President John Dramani Mahama has urged tenants to report landlords who demand illegal rent advances, warning that some property owners are exploiting Ghana’s housing shortage by asking for up to two years’ rent upfront.
Speaking during a dialogue with Organised Labour at Jubilee House on Tuesday, March 17, President Mahama said housing is a major problem in Ghana, consuming a significant portion of household income.
He emphasized that the government, private sector, and organized labour must work together to create a social housing policy that ensures affordable housing, either through mortgages or rental options at fair rates.
“The reason private house owners are taking advantage is because of the deficit in housing. We have rent courts and rules that limit rent advance to six months. But many tenants and landlords avoid the courts, and as a result, some tenants end up paying two years’ rent advance just to secure a place to stay” he said.
President Mahama stressed that tenants must use the legal system to hold landlords accountable. “If you are asked for two years’ rent advance, you can report the landlord at the rent court, and we will hold them accountable,” he said.
Highlighting successful examples from other countries, Mahama pointed to Kenya, saying, “Countries have instituted social housing policies that have been very successful. I’ve seen the Kenyan example, and Kenya has built hundreds of thousands of housing units, which they either rent or sell to government employees.”
He explained that past mortgage schemes in Ghana had failed because they were fixed in U.S. dollars. “The dollar kept sliding and was not stable. If you took a mortgage, eventually you could not pay, and the unit would be taken from you,” he said.
Mr. Mahama said the government is now focused on stabilizing the cedi to create a predictable and fair housing market.
“We don’t want a strong cedi; we want a stable city. If the cedi depreciates by 3% or 5% each year, you can plan, and it will not add too much to your mortgage bill,” he explained.
A stable housing system, he added, would allow workers to use their income to take mortgages instead of paying high rents to landlords.
“The rent that you were paying will go toward owning your own house. This is something we need to look at carefully and implement,” Mahama said.
The President called for a collaborative effort between government, private developers, and labour groups to address the housing deficit and provide affordable housing solutions.
He stressed that a comprehensive social housing policy would protect tenants, regulate rental practices, and ensure that workers can access homes without being exploited.
“Until we address the housing shortfall, these exploitative practices will continue. We must work together to create a system where housing is affordable, predictable, and fair for all Ghanaians,” Mahama concluded.
Source: Mubarak Yakubu/angelonline.com.gh
