The Vice President, Dr. Mahamudu Bawumia says the New Patriotic Party (NPP) government will provide loans for young people to rent decent homes if its mandate is extended on December 7, 2020.
He said this will be done through a new National Rental Assistance scheme which will start off with an amount of GH¢100 million.
The Vice President made the announcement at the official launch of the party’s election 2020 manifesto in the Central Region on August 22, 2020.
“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.
Dr. Bawumia added that the scheme will primarily serve people in formal employment and people will be required to provide guarantors to access the support from the scheme.
He said the government will on a monthly basis deduct in fractions the loan from the income of the beneficiaries.
“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.”
The Vice President further indicated that the government will partner with the private sector to raise more capital to keep the scheme functional.
“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.”
