President John Dramani Mahama has attributed the growing issue of excessive rent advance payments in Ghana to the country’s housing deficit.
He made the remarks during a public engagement on housing and sanitation in Accra on Thursday March 19,2026, where he outlined challenges facing households and proposed solutions to improve access to affordable housing.
He explained that the shortage of housing has created a situation where private landlords take advantage of tenants by demanding more than the legally approved rent advance.
He noted that although the law limits rent advance to six months, both tenants and landlords often avoid the rent courts and settle such arrangements privately.
He added that tenants, in most cases, agree to pay up to two years’ rent in advance because they urgently need accommodation and fear losing available spaces.
According to him, the situation continues because of the gap between housing demand and supply.
He called for a national housing dialogue involving government, the private sector and organised labour to develop a social housing policy.
He stressed that such a policy would help provide affordable housing options for workers, either through mortgage schemes or rental arrangements at reasonable prices.
He also pointed to successful housing models in countries like Kenya, where large scale housing projects have been implemented for public sector workers.
He further explained that past mortgage systems in Ghana discouraged home ownership because they were tied to the US dollar, making repayment difficult due to currency fluctuations.
He said stability of the local currency is key to improving mortgage accessibility, adding that predictable depreciation would allow workers to plan and manage payments more effectively.
He urged stakeholders to work together to maintain a stable economy, noting that it would benefit both homeowners and prospective buyers.
By: Jacob Aggrey
