Estate surveyor and professionals in the real estate sector have warned that the proposal and implementation of monthly and quarterly rent payment could affect the availability of rental properties across Lagos State.
He equally added that property supply issues would arise and it could directly impact the growth of the rental market sector.
Speaking on the impact of the monthly rent proposal, Principal partner, Ismail & Partners, Mr Gbenga Ismail said the proposal only addresses the issue to protect the tenants without looking at the property owners and developers who may need to recoup some Investments.
While affirming that one of the ongoing reforms in the Lagos state real estate sector is that the government is set to enforce a 10% cap on agent fees.
He noted that while the suggestion of monthly rent in Lagos state is commendable on paper, the government needs to provide legal clarity and infrastructural support.
Mr. Ismail suggested that the government should construct housing estates to improve the supply of housing, and then come up with a Lagos rent policy to provide legal backing to the idea before involving the private sector.
He commended the government for thinking in a direction that would ameliorate the hardships of Lagosians as the economic headwinds get tougher.
He agreed that while multiple-year rent payments may be okay for businesses and people in the high-income brackets, the situation is different for many others because of the economic peculiarities.
He further said the percentage legally covered by the LASRERA law, and the government has launched reporting channels for residents to report agents who default. Residents can also report landlords who arbitrarily impose additional charges or randomly increase rents by up to 100%.
The move has triggered reactions and feedback from Lagosians, who also made suggestions on how the government can better enforce compliance.
Commenting on the cost of properties and rentals in Lagos state, Ismail remarked that the government can help the situation by introducing robust policies to improve access to affordable land, affordable building materials, among others.
“Government should allow land to be accessed cheaply at marginal cost by allowing the builder to build quietly while the government earns their monies through ground rent fees and other fees related to housing income.
“It is unfortunate that over 70% of finishing housing products are imported. If a three-bedroom flat goes for N15 million where is the affordability for an average Nigerian.
