Rental housing- a new legislation

A government-appointed, 19-member panel headed by Jaithirth Rao, chairman, Value & Budget Housing Corporation has recommended a new legislation for regulating rental housing and suggested that tax benefits be given to encourage developers to set up rental housing projects.

The suggestions include the setting up of fast track tribunals for speedy resolution of all rent-related cases, and giving infrastructure status to large rental housing projects to enable them to avail of tax holidays, which will lead to lower costs and has also suggested that affordable rental housing should include affordable hostels, dormitories and flats that are smaller than 60 sq m.

In Metropolitan Cities like Delhi, Mumbai and Bangalore, which have a migrant population of 30-40%, may prefer to rent houses instead of buying them.