Vice President Dr Mahamudu Bawumia has announced that the governing New Patriotic Party (NPP) 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.
Vice President Bawumia announced this at the official launch of NPP’s campaign 2020 manifesto in the Central Region on Saturday.
“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 and this is why the government has decided to come in and bridge this market failure by setting up a National Rental Assistance Scheme,” he pointed out.
Vice President Bawumia explained that the scheme will primarily serve people in formal employment and potential beneficiaries would be required to provide guarantors to access the support from the scheme.
According to him, 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.”
Vice President Bawumia also 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.