Rent control board revival planned as govt lacks power to cap rents
Urban and rural development deputy minister Evelyn !Nawases-Taeyele says the ministry has no legal power to control rental prices, highlighting the need for rent control boards.
The ministry is working to revive and establish these boards, she added, and reviewing the Rents Ordinance No. 13 of 1977 and drafting a new bill to reflect today’s rental market realities.
“The matter is at procurement, and it will soon be advertised through open national bidding for consultants with expertise in property values, property laws and rental matters to come onboard,” she told parliament last week.
Nawases-Taeyele was responding to questions on measures to ease the rent affordability crisis, as the 2024 average rental price hit N$7 348 and inflation stood at 5.1%.
Urban tenants are spending a growing share of their income on rent, with two-bedroom units rising 14.7% over the year.
“Currently, there is no law that empowers the ministry to control rental prices, hence the need to establish the rent control board to address this issue," the minister confirmed.
"However, this task requires a collective effort from all stakeholders involved in the industry. It should be noted that the rent control board alone will not have the significant reduction we want to see in rental prices, as rents are based on property values,” she noted.
Judge and executioner
She added that the Rents Ordinance No. 13 of 1977 defines reasonable rent as not more than 9.5% per annum of a property’s value (land plus improvements).
“This means as long as property values remain the way they are, rental prices will always remain high," !Nawases-Taeyele explained.
"Therefore, we need property value-based reforms, and one such reform is the establishment of the Namibia Council for Property Valuers Profession under the custodianship of the Valuer General… which was inaugurated in early March 2025 by the former minister Calle Schlettwein,” she added.
The minister highlighted that the council will take over the regulation of the valuation profession from banks, which have been operating as both player and referee for over two decades.
“For decades, banks have been the financiers of home loans, yet they hold a dominant position in determining the values of those same properties from which they also benefit in interest," she said.
Steep prices for shacks
Meanwhile, rental prices are rising sharply for residents living in shacks, many illegally built, in Windhoek’s informal settlements, placing an unbearable burden on low-income households living without electricity, sanitation, or running water.
Last year, Namibian Sun reported growing concern over tenants paying as much as N$1,600 per month for makeshift rooms lacking essential services.
Last year, Namibian Sun reported tenants paying up to N$1 600 per month for makeshift rooms lacking basic services. A Namibian Sun visit also revealed wide disparities in shack rental prices across the capital.
In Havana, one of Windhoek’s largest informal settlements, residents reported rental fees ranging from N$250 to N$600, despite it being illegal to erect and rent out shacks.
“The structures on this side are illegal, which makes renting illegal here in Hakahana, so it can’t be more than N$600," a local shack owner explained.
The owner added that prices can reach N$600 if water and electricity are provided. Electricity remains scarce, with many residents relying on dangerous illegal connections, while toilets are often shared among dozens of people.
