In a Union Cabinet meet today (June 2, 2021) headed by the Prime Minister Narendra Modi the Model Tenancy Act has been approved for circulation to all States / Union Territories for considering the same by implementing fresh legislation or amending current rental laws suitably.
The move will enable the necessary amendments in the legal framework concerning the rental housing segment in the country, which will further boost up its prospects going forward.
The Model Tenancy Act will work to establish a vibrant, sustainable as well as inclusive rental housing segment across the country. Also, it would aim at gradually moving the rental housing segment to a formal market and enable its institutionalization. Further it would cater to the problem of homelessness and would provide sufficient rental housing inventory for all of the income groups.
Moreover there shall be a step taken towards unlocking of vacant houses such that they are available for rental housing. Also, the move may result in the surge in private participation in the rental segment to cater to the huge shortage.