The Centre on Wednesday approved the Model Tenancy Act, a move that is likely to overhaul the legal framework concerning rental housing across the country and help spur its overall growth.
In an official announcement after the meeting, the cabinet said that the Act will enable unlocking of empty houses for rental housing purposes.
The cabinet, chaired by Prime Minister Narendra Modi, stated that the Act will be in “circulation to all states/Union Territories for adaptation by the way of enacting fresh legislation or amending existing rental laws suitably.”
According to the government a clearer, more stable legal framework for tenancies will help unlock housing stock in India.
As per the 2011 census over one crore properties were lying vacant. That number is likely to have increased over the last decade.