The revival of Namibia’s Rent Control Boards has entered the procurement phase, with government preparing to appoint specialist consultants through an open national bidding process as part of broader reforms aimed at modernising the country’s rental market framework.
Minister of Urban and Rural Development James Sankwasa told the National Assembly that the ministry is progressing with plans to re-establish Rent Control Boards, alongside a review of the Rents Ordinance No. 13 of 1977 and the drafting of new legislation aligned with current housing and rental market conditions.
“The matter is at procurement stage and will soon be advertised through Open National Bidding for consultants with expertise in property values, property law and rental matters to come on board,” Sankwasa said.
The initiative forms part of government efforts to address longstanding regulatory gaps in Namibia’s rental sector, where existing legislation has largely remained dormant since Independence.
Responding to questions on tenant deposits and enforcement mechanisms, Sankwasa said the current rental market is regulated by the Namibia Estate Agents Board, which falls outside the mandate of the Ministry of Urban and Rural Development.
“Currently, the rental market is regulated by the Namibia Estate Agents Board, which does not fall under the Ministry of Urban and Rural Development but under the Ministry of International Relations and Trade,” he said.
He acknowledged that provisions under the Rents Ordinance — including limits on rental deposits — are outdated and largely non-functional. Section 25 of the Ordinance stipulates that rental deposits should not exceed 50% of one month’s rent.
“In other words, I fully agree that this law is completely outdated,” Sankwasa said.
The minister noted that there is currently no legal framework empowering the ministry to regulate rental prices, underscoring the importance of re-establishing Rent Control Boards to improve oversight and affordability within the housing market.
He added that rental pricing remains closely linked to property valuations, with the Ordinance defining reasonable rent as not exceeding 9.5% per annum of a property’s value, including land and improvements.
“As long as property values remain at current levels, rental prices will continue to remain high,” Sankwasa said.
He pointed to ongoing reforms within the valuation sector, including the establishment of the Namibia Council for the Property Valuers Profession under the Office of the Valuer General, aimed at strengthening oversight and improving consistency in property valuations.
On housing supply, Sankwasa said land servicing and housing delivery remain key priorities under National Development Plan 6, with government focusing on informal settlement upgrading, township establishment and expanding serviced land availability.
He confirmed that 572 housing units under the Mass Housing Development Programme are yet to be completed, while an additional 400 units will be constructed with grant funding from the People’s Republic of China. The Build Together Programme and annual support to the Shack Dwellers Federation of Namibia are also continuing.
Sankwasa added that the ministry is drafting a new bill to replace outdated provisions in the Ordinance, including penalties that no longer reflect present-day economic realities.
“That means matters such as N$200 fines were appropriate for the property market of that time. In today’s market, the time value of money must be considered,” he said.
However, he cautioned that reforms must be implemented carefully to avoid destabilising the property market, stressing that existing laws must continue to be enforced while new legislation is finalised.
