A draft law on Egypt’s old rental system is stirring heated debate among the country’s tenants and experts, Invest-Gate reports.
Two members of parliament proposed the draft bill in the hopes of getting a step forward in the long-debated file of the old rental system.
The old rental system in Egypt allows citizens to rent a house by paying a small amount of money at the beginning, then paying monthly meagre rental fees.
The new draft bill is trying to end old contracts between tenants and homeowners that lasted for 10 years with experts saying that the new amendments to the law is ‘untimely’. The draft law means that three million Egyptians will be forced to leave their homes, real estate experts add.
They believe that the new draft bill does not suit the current economic conditions that the country is passing through. According to data released by the Central Bank of Egypt, inflation rates hit about 30.2% in February.
A parliamentary housing committee said in a press statement that the bill will not be put into effect before being discussed with the public and at different ministerial, social and governmental levels.
According to local experts, the draft bill on the old rental system should not be applied unless all parties concerned with the law are fully convinced to accept the new amendments.