The additional burden of increased house rent is further exacerbating the struggles of lower-income people who are already grappling with rising prices of essentials and services. A significant portion of Dhaka's 15 million residents live as tenants, and their incomes are constrained.
Typically, landlords raise rents at the beginning of the new year. A Prothom Alo report highlighted a case in the Kathalbagan area where a tenant received a notice of rent increase. The rent for a three-room, 1,500 square feet flat was raised from 25,000 to 27,000.
Prothom Alo has reported an increase in house rents ranging from 500 to 3,000 in various areas of the capital, with some locations experiencing even higher increments, up to 5,000. It is worth noting that a significant portion of tenants' income is dedicated to housing expenses, and in many cases, their food costs are also substantial.
The Bangladesh Bureau of Statistics (BBS) recently published a house rent index, categorising three types of houses—concrete, corrugated tin, and mud. The data reveals the highest rate of house rent increase during the April-June trimester for mud houses, with the index rising from 110.83 to 111.19.
Contrary to the Dhaka North City Corporation's list, where the maximum rent for a house next to the main road in the Mirpur 2 area is set at six and a half taka per square foot, actual rents in the area are reported to be much higher. For instance, the rent for each 1000-square-foot house next to the main road in Mirpur ranges from 20,000 to 22,000 takas, significantly surpassing the corporation's fixed rates.
According to Bangladesh Bureau of Statistics (BBS), the national wage growth rate in last November was 7.72 per cent. In contrast, overall inflation was 9.49 per cent. Wages did not increase compared to the cost of living. In places where the living conditions of the job holders and other professions with limited income have become extremely difficult due to the increase in the prices of essentials, the increase in house rent has hit them hard. Many are forced to rent small houses on the outskirts of the city.
House or flat owners give various reasons for hiking the rent, including increase in the price of essentials, interest on home loan, increase in maintenance cost. But people with limited income, who live in rented houses, where will they go?
The law enacted in 1991 to regulate house rent is deemed ineffective due to the absence of necessary regulations. Despite a High Court order on July 1, 2015, mandating the creation of a high-powered commission to determine maximum and minimum rents by area, its implementation has not been carried out. The lack of regulation allows house owners to increase rents at their discretion.
Baharane Sultan, president of Bangladesh Tenant Federation and Tenant Council, emphasised the need to establish ceilings and floors for house rents based on areas, preventing arbitrary increases. Sultan hopes that the government will take the necessary steps to provide relief to tenants in Dhaka city.