The Vice President, Dr. Mahamudu Bawumia has indicated that the next New Patriotic Party (NPP) government will provide loans for young people to rent decent homes.
This he stated would be will be done through a new National Rental Assistance scheme which will start off with an amount of GH¢100 million.
He made this known at their manifesto launch. “There are lots of youth who when they finish school, to rent accommodation is a big problem especially because of the demand for rent allowance sometimes up to two years demand. But someone who just finished school and is starting a job doesn’t have that savings to pay all these huge demands for rent allowance…There is a market failure…This is why the government has decided to come in and bridge this market failure by setting up a National Rental Assistance Scheme,” he said.
He explained further that the scheme will be accessed by workers in formal employment and people will be required to provide guarantors to access the support from the scheme.
“Under this scheme, if you have a job and we can deduct regularly from your income under this scheme, the National Rent Assistance scheme will give you a loan to pay your rent allowance but it is to the landlord. You need to have formal employment.”
“We are going to be putting in place a GH¢100 million for the National Rental Assistance scheme and work with the private sector to crowd in more [funds] so that we can get this done and relieve a lot of people who are renting of the burden.”