Cabinet approves Model Tenancy Act

Union Cabinet has approved “Model Tenancy Act” for circulation to all States and Union Territories for adaptation by enacting fresh legislation or amending existing rental laws as required.


  • Approved act will help in rebuilding legal framework on rental housing in India which in turn boost overall growth.
  • Act was passed with the aim of creating a vibrant, sustainable and inclusive rental housing market.
  • It will help in creating adequate rental housing stock for all income groups and address the issue of homelessness.
  • It will enable institutionalisation of rental housing by shifting it towards formal market.
  • It seeks to facilitate unlocking of vacant houses for rental housing purposes and give a fillip to private participation in rental housing as a business model. This will help in addressing huge housing shortage.

What is Model Tenancy Act?

Model Tenancy Act, 2019, a tenancy law in India, was designed to rebuild tenancy market. Creation of the act was first announced in budget speech of 2019 by finance minister Nirmala Sitharaman. It seeks to replace archaic rental laws of India and to solve housing availability deficit. Act will help in achieving the target of “Housing for All by 2022”.


Leave a Reply

Your email address will not be published. Required fields are marked *