NEW DELHI: The Union Cabinet on Wednesday approved the Model Tenancy Act, a move that will help overhaul the legal framework with respect to rental housing across the country.
In a statement, the government said that it is expected to give a fillip to private participation in rental housing as a business model for addressing the huge housing shortage.
"The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the Model Tenancy Act for circulation to all states/union territories for adaptation by way of enacting fresh legislation or amending existing rental laws suitably," the statement stated.
The Act will enable institutionalisation of rental housing by gradually shifting it towards the formal market, the government said.
"The Model Tenancy Act aims at creating a vibrant, sustainable and inclusive rental housing market in the country. It will enable creation of adequate rental housing stock for all the income groups thereby addressing the issue of homelessness," it stated.
The Act will facilitate unlocking of vacant houses for rental housing purposes, it said, adding that it is expected to give a fillip to private participation in rental housing as a business model for addressing the huge housing shortage.