Hostel operators need fair returns, but rents must still be assessed — Rent Commissioner, Frederick Opoku

Acting Rent Commissioner Frederick Opoku says private hostel accommodation charges must be subjected to proper and scientific assessment processes to ensure fairness for both investors and students.

Speaking on JoyNews’ Super Morning Show, Mr Opoku acknowledged concerns raised about the high cost of construction and the need for investors to recover their investments.

However, he maintained that hostel operators cannot independently determine rental prices without regulatory assessment.

“It will be unfair for me to sit here and say the fair price must be this. I believe in using scientific means,” he stated.

The discussion followed arguments by a panellist who explained that rising construction costs, interest rates, and operational expenses make it difficult for hostel investors to charge lower fees.

Using examples from State Housing Company developments and university accommodation projects, the panellist argued that many investors would struggle to recover their investments over 25 years if hostel rents are significantly reduced.

“There is no investor in this country now who can build these structures without bank loans with interest,” the panellist noted.

Mr Opoku, however, insisted that the central issue is whether hostel charges have been properly assessed under the law.

“That’s the point. Did they even assess it?” he questioned.

According to him, fairness in pricing cannot be based on assumptions or individual discretion but should follow established valuation and assessment procedures.

The debate comes at a time when accommodation costs for tertiary students continue to rise across Ghana, with many students and parents expressing concern over affordability.

Authorities are expected to review aspects of Ghana’s rent regulation framework as part of broader efforts to address concerns within the housing and student accommodation sectors.

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