The government today said it will come out with a modern tenancy law to promote rental housing in urban areas after taking into account the contemporary requirements of the tenants.
"We are planning a National Urban Rental Housing Policy ... In today's date, the tenants are more in number... This policy will be for people who let out their house on rent," Urban Development Minister M Venkaiah Naidu said in Lok Sabha.
The policy is being planned to promote rental housing in urban areas in view of the large migration of population from rural areas to cities, he said, adding that its draft has been circulated to the states for their views.
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.
"We are trying to evolve a policy for modern tenancy law. It is very challenging. I seek similar support from you (opposition) in the modern tenancy law. It is difficult but not impossible," Naidu said, while winding up a debate on the Real Estate (Regulation and Development) Bill, 2013.
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.
