Kwakye Ofosu Says Falling Building Costs Do Not Support Rent Increases

Minister of State for Government Communications, Felix Kwakye Ofosu, says current economic conditions do not support rent increases, citing declines in the prices of building materials and borrowing costs.

Speaking on Metro TV's Good Morning Ghana on Friday, November 13, during a discussion of the 2027 Budget, Kwakye Ofosu said monthly market surveys commissioned by his office show that the prices of most goods have fallen.

According to him, the price of a bag of cement has dropped from about GH¢115 in 2024 to around GH¢80, while the cost of iron rods has declined from approximately GH¢9,800 to GH¢6,800 per tonne. He also noted that some banks are offering loans at interest rates as low as seven per cent.

He argued that lower construction and financing costs reduce the justification for rent increases, although he acknowledged that some landlords may still be recovering costs incurred during periods of higher prices and interest rates.

Under Ghana's Rent Act, 1963 (Act 220), rent increases are subject to assessment by the Rent Control Department and require one month's written notice to tenants. Charging rent above the approved amount constitutes an offence under the law.

The Rent Control Department has recently directed the University of Ghana Enterprise Limited and some private hostel operators to suspend unapproved rent increases and refund affected tenants.

Meanwhile, the government is working to replace Act 220 with a consolidated Rent Act, with the drafting process reported to be at an advanced stage.

On the broader economy, Kwakye Ofosu said the cedi has strengthened against the US dollar compared with previous levels. However, concerns about the cost of living persist, with some stakeholders maintaining that food prices remain high despite recent economic gains.

Tenants who believe they have been charged rent above approved levels can seek redress through the Rent Control Department.

— 3News