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No more property grabbing by tenants: Soon, rent out your house worry free with new rent policy

FE Online
pmay, real estate sector

In a massive relief to homeowners and landlords against illegal occupancy of property, the government has said that it is formulating a new rental policy which is likely to check existing loopholes of the system. "Very soon you will see a rental policy out," Union Minister Hardeep Singh Puri said on Thursday, adding that a good number of people do not want to rent out their properties due to the fear of a "weak legal system", and chances that "you might not get your property back", he said at an event. The policy, which will be under the ambit of the Ministry of Housing and Urban Affairs (MoHUA), will also help in alleviating housing shortage in urban areas by providing confidence to more people to lease their assets.

Also Read: Rs 20 lakh crore funding tap opened for PM's Housing For All; sovereign boost for affordable housing

Millions of houses lie vacant across the country and the new policy is expected to overcome the concerns of landowners. It will be like a preferred template, with the states able to bring changes to the policy according to their requirement. "You have got the template etc (of the policy). States can tweak it to the extent they like. You will have a situation where large amounts of residential accommodation which is not being utilised will then be released into the market," Hardeep Singh Puri said. The Prime Minister Narendra Modi-led government had earlier set the agenda of providing affordable housing to all by 2022.

Meanwhile, a budget announcement by Finance Minister Nirmala Sitharaman is also expected to give a funding boost to real estate. In her second budget speech, FM Sitharaman said that Sovereign Wealth Funds investing in infrastructure in the country will get a tax exemption on interest, dividend and capital gains income. This is likely to open up massive funds for the real estate sector, property consultancy firm JLL India said in a research report this week.

"India seems to have gained a major impetus following some positive policy backing and the ecosystem in general thus helping boost the image of the country as a favourite with SWFs," JLL India said.