New Tenancy Law to boost realty in NCR- U.P

The new tenancy law approved by the Uttar Pradesh government, will help facilitate growth of housing in the state, particularly in the high potential NCR region of the state.

Under the new law, a rent agreement is a must for a property to be given on rent. A Rent Authority will be set up and any new rent agreement will have to be registered with it. The Authority will issue a unique identification number. And within seven days of receiving an agreement, its details will be uploaded on the authority’s website. Details of the tenant may not be shared with the Authority, if the duration of the tenancy is less than 12 months. The new law lays down responsibility of the property owner, increase in rent on renewal of lease, details of the rent authority which will consider cases of dispute etc. Once this new law is in place, there will be much more clarity in the agreement between tenant and property owner. Therefore, there will be no scope for petty disputes. Or at least there will be much more clarity on several issues. The law will ensure clarity about the persons responsible for payment for painting and maintenance of building besides, water and power bills.

Says Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global Group and Chairman, Assocham National Council on Real Estate, Housing and Urban Development, “The passage of this law is crucial for the growth of real estate, particularly residential real estate. Millions of homes in India are lying locked because the home owners feared to rent out their property in the absence of a law. But now this new tenancy law, will boost the confidence of home owners and lot of idle housing stock will come out in the market for renting. This will also considerably help in checking legal disputes between property owners and renters. And this in turn will help bolster real estate growth”.

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