‘We need a rent control board’

With the ongoing housing crisis in Namibia, rent prices continue to skyrocket and the absence of an appropriate regulatory body is only worsening the situation. An irate reader sent the following email expressing their rage at this situation:

Just looking at the totally mad prices that people are charging for rental property, it has become more than obvious that this country is in desperate need of a rent control board!If a landlord’s monthly installment is, say N$5 000, he/she should be restricted, not to be able to charge more than say, 20 per cent above his/her monthly installment!As things stand now, it has become a madhouse with everyone charging just what they want to!This has got to stop! Our throats are being cut, right to the bone!People are rather putting up shacks because no one can afford these insane prices anymore!Please, please can’t someone out there come up with something?Is there still someone out there who has a one or two bedroomed place at a reasonable price?We need a rent control board!According to Namibia www.namibia-estate.com, the relationship between landlord and tenant in Namibia was regulated to a certain extent until 1991 when all Rent Boards ceased to function and the Rents Ordinance No.13/1977 lost its power. Although this Rents Ordinance still exists, it is only applicable to business premises. Before 1991, the Rent Ordinance had provided for the establishment of rent boards. It also regulated the relationship between landlord and tenant and the boards were in effect ’empowered to investigate complaints (from tenants or landlords) and consider possible applications for increase or decrease of rent by any lessor or lessee’.City of Windhoek’s (CoW) Joshua Amukugo said he is not aware that any rental board or similar body is in existence in Namibia. He also adds that the municipality has no role whatsoever in the regulation of rent in the country. ‘All those things are being controlled by the rules of supply and demand and as such, the capitalist system is always dictating. This is similar to the selling of farms whereby the willing-buyer willing-seller concept is used.’Milton Louw, a consumer rights activist argues for a holistic approach to be considered. He explains that the benefits of rent control are:’Such a law gives the tenant the ability to insist on certain improvements being done a minimum standard, without allowing the landlord to retaliate with higher rental fees. Rent control (rent stabilization) provides for regulation and assurance that consumers can maintain stability in their housing situation. The moral argument for rent control is that housing is a human right that is more important than the property rights of landlords,’ he said.However, the arguments against rent control are: Putting a cap on rent prices reduces the quantity of housing available. It reduces the number of investors willing to purchase housing for the purpose of renting or to make income. If introduced in Namibia, rent control will reduce the resale value of property affected.In conclusion, Louw tells us that the increase of rent in Namibia has led to high-cost to income ratio. ‘Thus, the families affected by high or unaffordable rentals means they are now unable to afford non-housing necessities such as food and medicines. The Namibia Consumer Protection Group (NCPG) believes the answer to the problem of high cost to income ratio is to directly increase the income of low-income households. The Government should look at a policy programme that provides food stamps, health insurance, national pension plans, etc that make non-housing expenses more affordable’.