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The Uttar Pradesh government has approved a new affordable housing policy aimed at increasing housing supply for economically weaker sections and middle-income families in urban areas. The policy supports the Affordable Housing in Partnership and Affordable Rental Housing components under Pradhan Mantri Awas Yojana Urban 2.0. Beneficiaries will receive INR 1.5 lakh assistance from the central government and INR 1 lakh from the state government. Developers will receive exemptions on several project-related charges, while homebuyers will get stamp duty relief. The policy also introduces a structured rental housing model to support urban workers and low-income households.
The Uttar Pradesh government has approved a new affordable housing policy to expand access to housing for economically weaker sections (EWS), low-income groups (LIG), and middle-income families in urban areas. The policy will implement the Affordable Housing in Partnership (AHP) and Affordable Rental Housing (ARH) components under the Pradhan Mantri Awas Yojana Urban 2.0 programme. Advertisement
Under the policy, eligible beneficiaries will receive financial assistance of INR 1.5 lakh from the central government and INR 1 lakh from the Uttar Pradesh government to support housing construction or purchase. The financial support is intended to reduce the cost burden for households that fall within the lower and middle income categories and encourage home ownership in urban areas.
The policy also includes incentives for developers to encourage private sector participation in affordable housing projects. Builders working on approved or whitelisted housing projects will be given exemptions from several charges, including land-use change fees, map approval charges and external development charges. These concessions are expected to reduce project costs and encourage developers to build more affordable housing units.
Homebuyers purchasing units under the approved projects will also receive relief on stamp duty, which could help reduce the overall cost of buying a home. Officials believe that lowering transaction costs and providing direct subsidies can help increase demand for affordable housing while also supporting project viability for developers.
A key feature of the policy is the Affordable Rental Housing (ARH) component, particularly ARH Model-2. This model allows rental housing projects to be developed by private entities as well as public institutions. The rental housing units will mainly target migrant workers, industrial labourers, working women and urban families belonging to the EWS and LIG categories.
Institutions developing rental housing projects will also be responsible for the operation and maintenance of these housing complexes. The aim is to ensure that the housing stock remains functional and continues to serve the intended beneficiaries over the long term. Rental housing has become an important part of housing policy in many states as large numbers of urban workers prefer or require rental accommodation rather than immediate home ownership.
During discussions related to housing schemes in the state, the finance minister also acknowledged concerns regarding earlier housing programmes. He indicated that complaints had been received about unauthorised occupation of several units built under the Kanshiram Awas Yojana in different districts. The issue was noted while reviewing housing programmes and planning improvements in future housing policies.
The new policy aligns with the broader objectives of the Pradhan Mantri Awas Yojana Urban, which was launched to increase affordable housing supply across Indian cities. Over the years, the scheme has promoted housing development through government subsidies, partnerships with developers and state-level housing policies aimed at improving urban living conditions.
Rising urbanisation and increasing demand for housing have made affordable housing a priority area for several state governments. Higher land prices and construction costs have also made it necessary for governments to offer policy support and financial incentives to keep affordable housing projects viable.
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