Rental housing policies and associated legal covers: Case of middle income formal housing in Karachi

In the global south, policies related to the housing sector have a general inclination towards property ownership. Little efforts are put in supporting, strengthening and promoting the rental housing market. Similar practice is witnesses in Pakistan for provision of housing for middle income groups. The fact that making housing available through the rental market is less time consuming, more efficient and perhaps a better solution, at least in the short run, is not acknowledged. Furthermore, the policies related to rental housing are inadequate and the sector despite having great potential has been facing grave issues, such as lack of appropriate legal covers and safeguards for property owners. This research, using systematic literature review and being based on semi structured interviews of key stake holders critically analysis the existing regulations, policies and bye-laws within the rental market in Pakistan. It also assesses the viability of this housing market as an alternate to home ownership. The conclusions point towards rental housing as a potential alternate to home ownership if the legal covers are clear and safety nets for tenants and landlords are stronger. The results also point towards the flexibility that rental housing offers for younger middle-income households as it encourages movement when searching for better economic options.