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By Maduka Nweke
The Lagos State government has announced its intention to roll-out a monthly rental scheme by the end of this year or early next year in response to growing concerns over soaring rentcosts.
The Special Adviser to the Lagos State governor on Housing, Barakat Odunuga-Bakare, revealed this development during a recent press briefing organised by the Lagos State Real Estate Regulatory Authority in Ikeja.
Under the proposed scheme, tenants will transition from the current annual rent payment model to a monthly payment system. In addition, landlords will be required to adjust their rental charges based on the income levels of their tenants, rather than imposing exorbitant rents.
The move follows Governor Babajide Sanwo-Olu’s advocacy for a shift towards a monthly rental system in 2021, citing the mismatch between the existing rental model and the prevailing realities in the housing sector. Sanwo-Olu emphasised that the monthly rental approach would be more accessible to low- and middle-income earners, alleviating the financial burden of annual rent payments.
Addressing the 10th meeting of the National Council on Lands, Housing and Urban Development held in Lagos, Sanwo-Olu urged policymakers to adopt a regulatory framework to facilitate the transition to the new rental system.
Furthermore, the governor highlighted Lagos State’s efforts to devise monthly rent guidelines to accommodate residents who are not part of the state’s homeownership scheme.
Former Minister of Works and Housing, Babatunde Fashola, echoed Sanwo-Olu’s sentiments, emphasising that the current yearly rental system exacerbates housing supply imbalances and widens the affordability gap for low-income earners.
The move towards an income-based rent mandate aims to create a more equitable rental market in Lagos, ensuring that housing remains accessible to residents across various income brackets.
