Hostel operators warn Rent Control action could worsen accommodation shortage at KNUST
Private student hostel operators have strongly criticised the Rent Control Department’s attempt to enforce price caps on student accommodation, warning that price controls are an economically failed policy that risks crippling Ghana’s higher education sector.
Student hostel operators are vehemently opposing the Rent Control Department's proposed price caps on accommodation, arguing it could exacerbate the existing accommodation shortage at Kwame Nkrumah University of Science and Technology (KNUST). The Rent Control Department recently announced its intention to impose price restrictions on hostel fees and restrict rate hikes across KNUST's campus.
Dr. Akwasi Owusu-Bi, the President and Chairman of the KNUST Hostel Owners Association, expressed his concerns at a media briefing, stating that fixing prices would not benefit the system and could create artificial shortages since suppliers would be unwilling to operate under government-set rates. He reminded the audience of Ghana's previous experience with price controls, which were abandoned due to their detrimental impact.
Dr. Owusu-Bi clarified that student hostels operate under licensing laws regulated by the Ghana Tourism Authority (GTA), not under standard tenancy laws overseen by the Rent Control Department. He explained that hostel occupancy is strictly linked to the university's academic calendar and that the facilities are subject to regular inspections by multiple regulatory bodies.
The hostel owners noted that the private developers stepped in only following the universities' invitation to address critical bed-capacity shortages the state could not resolve. They warned that if the Rent Control Department forces them to cease operations, universities would face significant accommodation deficits. The association recommended that the department focus on high-end real estate markets where rents are illegally quoted in foreign currencies and encourage private investors to support student housing.
The Association urged the government and university management to intervene and halt unauthorized enforcement actions, warning that such reckless threats could trigger an unprecedented student housing crisis nationwide. Michael Gyang Owusu, speaking on behalf of the association, emphasized that they were not seeking a legal battle but expressed concern over the Rent Control Department's lack of prior consultation before issuing public directives.
The legal exemption within the Rent Act of 1963 (Act 220) that the association relies on explicitly excludes properties where rent covers both board and attendance. Dr. Kenneth Donkor-Hyiaman, a Property Economist and Senior Lecturer at KNUST, cautioned against labeling hostel fees as "exploitative" without evidence. He stressed that if some hostels withdraw from the business due to pressure, over 80,000 students who rely on private accommodation could be left stranded, as KNUST can only accommodate around 10,000 students, leaving a significant gap for private operators to fill.
Dr. Donkor-Hyiaman urged policymakers to use the available land in universities and collaborate with private investors to build more hostels, urging them to prioritize long-term solutions over short-term political considerations.
Written by urgent.news from MyJoyOnline Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
