The government in its efforts to increase access to safe, secure, and affordable rental housing for lower-income households and the youth across the country, is set to roll out the National Rental Assistance Schemes (NRAS).
The Scheme when operational is to facilitate accessibility and affordability of rental housing by riddling Ghanaians particularly the low-to-middle income households and the youth from the unfair burden of multiyear rent advance payments.
To be implemented by the Ministry of Works And Housing is also to provide eligible Ghanaians with a mechanism to pay low monthly rent, which effectively removes the need for rent advance payment.
The Vice President Dr. Bawumia will be launching the Scheme on Tuesday
The pilot of the Scheme will be carried out in six (6) regions namely Accra, Kumasi, and Takoradi. Koforidua, Techiman and Tamale.
Residential renting in Ghana has been on an increasing trend for the past two decades as a result of the high demand for affordable rental properties.
The problem is compounded by an uncompromising demand of landlords to collect a year or two years of prepaid rent from potential tenants.
Research has shown that only 5% of Ghana’s population can acquire their own homes without any form of assistance, with 60% requiring support that is facilitated by the state to access housing whilst 35% will require additional direct support before they can have access to housing.
The assistance required by the households falling into the 60% band comes in the form of supportive regulations and competitively priced mortgages whereas the lower 35% band needs subsidies in addition.
However, for years, the focus has remained on home ownership to the detriment of other options that could well address the shelter needs of households who cannot own their properties early. Rental housing is as important as ownership in the sense of meeting sociological needs by protecting individuals and households from the elements, meeting civic needs by providing addresses, and adding to the fixed capital formation of the country.
To be eligible for the Scheme, the applicant must among other things requirements show proof to be a Ghanaian; possess a valid Ghana Card and must be an adult of eighteen (18) years and above
As part of the application process, the qualified person is expected to identify a property of their preference and notify the NRAS of the same through a formal online.
The applicant must also show proof of employment (3 months’ pay slips) and proof of income (3 months’ bank statements or mobile money statements), 2 forms of IDs, and pay GH100 application processing fee.
In just 5-10 business days, the Scheme will verify your application and supporting documents, and determine your affordability and the ability to pay back.
After the applicant has been approved, the Scheme will contact the chosen landlord, inspect the rental property, sign all tenancy documentation and pay the rent advance directly to the landlord.
The tenant takes possession of the rental property thereafter and rent payment is always due on the 1st of each month.