Union Urban Development Minister M Venkaiah Naidu today said the government is considering about bringing a policy on urban rental housing and discussions on it are on "advance stage".
"Government is now considering to bring rental housing policy. It is in advance stage of discussions. Once discussion completed, it will go to the Cabinet," Naidu said on the sidelines of 43rd Skoch Summit here.
Stating that the "government is committed to reforms", he said the policy would aid in achieving the mission of of providing housing for all by 2022.
The 'National Urban Rental Housing Policy' is being planned to promote rental housing in urban areas in view of the large migration of population from rural areas to cities.
The draft policy, which has been shared with states and other stakeholders, outlines certain recommendatory incentives, both financial and non-financial, to promote rental housing.
Despite a housing shortage of approximately 19 million units, about 11.09 million houses are vacant in urban areas as per 2011 census data.
The draft policy has suggested a host of fiscal incentives to encourage rental housing with a view to achieve the goal of housing for all by 2022.
Housing is considered as one of the key sectors to promote growth by increasing demand for steel, cement, besides creating additional jobs.
The draft policy has suggested tax incentives for house owners who will rent out the property, institutional owners wanting to set up mass rental housing and Property Tax exemption for Social Rental Housing properties.
It also suggested treating rental housing stocks at par with owner-occupied premises in terms of property tax treatment and calculating other utility charges like water and electricity.
