Govt to set up panel on rental housing stock

New Delhi: The government will soon form a committee for suggesting policy measures on creating rental housing stock for those who cannot afford to buy houses.

“There is currently a housing deficit of 27 million units and at least half of that are the people who can afford to own a house and rest who cannot. We are gradually in the process of segregating these two groups,” Ministry of Housing and Poverty Alleviation joint secretary Susheel Kumar said at a conference on affordable housing organised by NAREDCO.[caption id=“attachment_335875” align=“alignleft” width=“380” caption=“Housing stock. Reuters”]  [/caption]

The ministry is trying to increase the access to credit for those who have paying capacity to own a house, he said, adding that the ministry is working with the National Housing Bank (NHB) in this regard.

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“For others who does not have the paying capacity, there is a need to create rental housing stock in the country. We are in the process of setting up a committee, which would recommend us policy measures for promotion of rental homes,” the joint secretary said. He declined to give further detail.

The business model for rental housing stock should be such that developers as well as those who would manage such homes are able to earn profit, he said.

“We are going to catalyse a policy which will motivate developers to build affordable housing,” Kumar said.

He asked developers to have a re-look on their profit margins in the affordable housing projects.

The joint secretary said that access to credit and availability of land at cheaper rates are major challenges for development of affordable housing.

“High land prices are on account of greed of land,” Kumar said, adding that realty sector does not require to create a land bank.