Haruna Iddrisu proposes 5-10% annual rent increase cap for universities

Education Minister Haruna Iddrisu has announced plans to establish a committee tasked with regulating annual rent adjustments in public universities. The proposal aims to create a predictable system for accommodation costs, suggesting a potential cap of 5 to 10 percent for annual increases. This move is designed to curb arbitrary price hikes that have left many students struggling to afford housing at tertiary institutions across the country.

The Minister explained that the committee would provide formal recommendations to the Minister for Finance, Dr. Cassiel Ato Forson, on permissible rent adjustments. These recommendations would account for prevailing economic factors, such as inflation, ensuring that prices remain fair for both students and accommodation providers. By moving toward a more structured and regulated approach, the government intends to prevent the sudden and steep increases that have characterized the private hostel market in recent years.

This policy intervention follows a growing outcry from students at the University of Professional Studies, Accra (UPSA), who have raised concerns about the escalating costs of private housing. Students reported paying upwards of GH‵6,000 for shared private hostel rooms, many of which they described as cramped and inadequately equipped. The high costs relative to the quality of the facilities have prompted urgent calls for the government to act as a regulator to protect students from exploitation by private developers.

The proposed committee is expected to investigate the specific drivers of rising accommodation costs and suggest long-term solutions to improve affordability. Beyond price caps, the initiative seeks to ensure that private hostels provide value for money by maintaining proper living standards and adequate facilities. Students and educational stakeholders are now looking to the Ministry for a swift implementation of these measures to alleviate the significant financial burden on the student population.