The Lagos State government has called on key real estate bodies to collaborate in curbing excessive rent burdens and illegal charges imposed on Lagosians seeking accommodation
The Lagos State government has engaged the leadership of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), Real Estate Developers Association of Nigeria (REDAN), and the Association of Estate Agents in Nigeria (AEAN) to garner their support in alleviating the rental burden on Lagos residents and eradicating prevalent illegal fees within the real estate sector.
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In a statement released by the Deputy Director of Public Affairs, Ganiu Lawal, these professional bodies were also urged to address the escalating trend of agents engaging in competitive fee hikes in real estate transactions across the value chain.
The statement highlighted that “the introduction of illegal fees such as caution fee, inspection fee, finder’s fee, and others represents a professionally harmful practice which affects tenants and puts the integrity of the practitioners and property owners at stake.”
The engagement took place during a stakeholders’ meeting jointly chaired by the Commissioner for Housing, Moruf Akinderu-Fatai, and the Special Adviser to the Governor of Lagos State on Housing, Barakat Odunuga-Bakare.
This session marks a continuation of the government’s strategic efforts to curb arbitrary rent charges, high agent fees, and promote order within the Lagos State real estate market.
During the meeting held at the Ministry of Housing in Alausa – Ikeja, the state government, through the Commissioner and the Special Adviser, challenged the associations to uphold the integrity of the real estate business by supporting a unified effort among all stakeholders to fully enforce and comply with Lagos State’s real estate transaction laws.
“Lagos State Government is concerned about the challenges faced by families in securing and retaining rental accommodation in the state, with unpleasant rent increments and illegal estate transaction charges,” stated Commissioner for Housing, Moruf Akinderu-Fatai.
Commissioner Akinderu-Fatai emphasized that “the aim of engaging all stakeholders is to strengthen the working relationship between the State Government and the professional bodies for the benefit of Lagosians,” adding that the government is deeply concerned about the difficulties faced by families in securing and maintaining rental housing due to “unpleasant rent increments and illegal estate transaction charges.”
He also reiterated the government’s commitment to promoting monthly and quarterly rent payments in accordance with the tenancy law.
“The state government is aware of the increase in demand as greater than supply, but the government would no longer tolerate and allow the extortion of accommodation seekers with unwholesome practices,” Akinderu-Fatai asserted, assuring that Governor Babajide Sanwo-Olu’s administration is dedicated to ensuring sanity in the state’s real estate business.
Special Adviser Barakat Odunuga-Bakare highlighted the existence of state laws such as the 2015 Tenancy Law and the Lagos State Real Estate Regulatory Authority Law, which stipulate a maximum chargeable fee of 10 percent on real estate transactions.
She urged the stakeholders to collaborate with the government to ease the process of securing accommodation for Lagosians.
Representatives from NIESV (Lagos Branch), REDAN, and AEAN, namely Gbenga Ismail, Dr. Kolawole Tony, and Dr. Adeniyi Tinubu, respectively, expressed their collective readiness to establish a functional alliance with the state government to address the issues of high rent costs and excessive charges.
They also pledged that “the professional bodies will also join the state government in promoting advocacy, public enlightenment as well as sensitisation programmes on the best practices in real estate transactions.”
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The meeting concluded with a resolution to convene another stakeholders’ forum, which will include representatives from all sectors of the real estate business, including the Nigerian Bar Association, to ensure comprehensive buy-in for the benefit of Lagos residents.
