By Evangelist Emmanuel Annang Faithson
Arbitrariness in rent and weak regulation of the housing sector in Ghana have a deep link with the cycle of poverty. The long-standing issue of landlords demanding two to three years’ advance rent upfront, despite the law stipulating otherwise, and the state’s failure to enforce compliance, reflects negligence and complicity in fraud and abuse of the system.
This upfront burden keeps low- and middle-income earners poorer as they struggle to raise such lump sums. It also undermines family cohesion, as households are forced into overcrowded or unstable living arrangements.
Moreover, it discourages sustainable development by diverting disposable income away from long-term investments into arbitrary rent demands.
Currently, the average cost of a modest “chamber and hall self-contained” ranges between GH₵1,000 and GH₵1,500 per month, or GH₵12,000 to GH₵18,000 annually, depending on location and other factors.
With the daily minimum wage pegged at GH₵20 and the average annual gross income slightly above GH₵7,000, the mismatch between earnings and rent obligations is stark. Rent, therefore, is not merely a housing issue but a broader question of social protection, poverty alleviation, and human dignity.
In the wake of the global economic crisis, soaring unemployment, and widespread joblessness, the urgency of addressing Ghana’s rent crisis cannot be overstated. A well-structured rent policy initiative, backed by effective regulation and strict enforcement, must be prioritised to secure homes, protect vulnerable families, and stabilise communities.
Without decisive intervention, the unchecked cost of housing will continue to fuel poverty, deepen inequality, and weaken the social fabric. Tackling the rent problem is therefore not only an economic necessity but also a moral imperative for safeguarding the dignity and future of Ghanaian households.
The high cost of rent places severe pressure on families and individuals, with far-reaching consequences on mental health, productivity, and social cohesion. This has contributed to the alarming rise of slums and ghettos, even within previously well-planned neighbourhoods.
These overcrowded and poorly serviced settlements often become breeding grounds for crime, drug abuse, and other social vices, further compounding the challenges of urban management and national security.
Another layer of exploitation is the issue of agency fees. Rental agents, who act as middlemen, often impose additional costs on already struggling tenants. Prospective tenants are required to pay agents a percentage of the rent, in addition to transportation costs while searching for rooms. Worse still, these agency fees, often not less than GH₵200, are non-refundable, regardless of whether the agent secures accommodation for the client.
This lack of regulation further compounds financial stress and exposes renters to systemic exploitation. Research indicates that many households are forced to sell personal belongings, take expensive loans, or divert funds intended for business growth or savings, just to pay rent.
Government must act immediately to dismantle this entrenched mix of greed and exploitation. Unless bold and sustained interventions are introduced, rent will continue to drive poverty and social exclusion.
The problem is particularly acute in university towns, where high student populations inflate rent prices. This places undue strain on surrounding communities, altering their social dynamics. To address this, universities must be compelled by policy to build sufficient accommodation for their students.
The Rent Act, passed in 2015, has long expired and urgently requires review to reflect today’s realities. The Rent Control Board should be restructured into a fully empowered Rent Authority with greater enforcement capacity.
Beyond regulation, Ghana needs a balanced rent system that protects tenants from exploitation while ensuring landlords receive fair returns. Such a framework would restore trust, reduce systemic abuses, and make housing more accessible and sustainable.
Stringent measures must also protect tenants from arbitrary rent hikes. Increases should only be justified when landlords make substantial improvements, and otherwise permitted only after two years of tenancy, subject to percentage limits confirmed by the Rent Authority.
Justice, order, fairness, and accountability must be restored to Ghana’s rent and housing sector.
