Aimed at providing vivacity to the housing sector, the Finance Minister Nirmala Sitharaman announced in the Union Budget 2019-20 that measures would be taken up to promote rental housing in the country. “It is proposed that several reform measures be taken up to promote rental housing,” she said while presenting the Budget.
The existing rental laws are archaic and they do not address the relationship between the landlords and tenants in a realistic manner, she added. Sitharaman also said that a Model tenancy Law will be formulated and circulated to all the states.
The Ministry of Housing and urban Affairs had released a Draft Model tenancy Act in 2015 which aimed at regulation of tenancy for residential and commercial spaces.