Haruna Iddrisu proposes 10% annual rent increase cap for universities

Minister of Education Haruna Iddrisu has announced plans to establish a committee to regulate annual rent increases for student accommodation in public universities. The proposal aims to introduce a predictable system for price adjustments, potentially capping annual hikes between 5 and 10 percent. This move is designed to protect students from arbitrary and excessive charges imposed by private hostel operators and ensures that accommodation costs align with broader economic conditions.

The intervention follows growing concerns from students, particularly at the University of Professional Studies, Accra (UPSA), who have voiced frustrations over the high cost and poor quality of private housing. Some students reported paying upwards of GH₵6,000 for shared rooms that they described as cramped and inadequate. These escalating costs have prompted calls for government intervention to ensure that tertiary education remains accessible and that accommodation providers offer facilities that justify their fees.

Under the proposed plan, the new committee will evaluate economic factors, such as inflation and utility costs, to provide informed recommendations. These findings will serve as a guide for the Minister for Finance, Dr. Cassiel Ato Forson, in setting official limits on how much hostel rates can rise each year. Minister Iddrisu emphasized that a structured approach is necessary to prevent the unregulated price surges that currently burden families and students across the country.

While the focus is on public universities, the policy addresses a wider systemic issue where private hostel owners largely dictate market prices without oversight. By establishing a formal advisory body, the government hopes to balance the interests of private investors with the financial realities of the student population. The next steps involve the formal constitution of the committee and the development of a framework to ensure compliance among accommodation providers nationwide.