The Lagos State Government has initiated a collaborative effort with key players in the real estate sector to address the escalating housing challenges faced by residents. Recognizing the increasing burden of rent and the proliferation of illegal fees, the government has called upon the Nigerian Institution of Estate Surveyors and Valuers (NIESV), the Real Estate Developers Association of Nigeria (REDAN), and the Association of Estate Agents in Nigeria (AEAN) to partner in implementing solutions and enforcing existing regulations. This strategic engagement aims to curtail arbitrary rent increases, curb excessive agent fees, and instill professionalism and transparency in the real estate market. The government emphasizes the importance of upholding ethical practices and protecting the interests of both tenants and property owners.
The stakeholders’ meeting, co-chaired by the Commissioner for Housing and the Special Adviser to the Governor on Housing, served as a platform for open dialogue and collaborative problem-solving. The government expressed its concern over the difficulties faced by Lagosians in securing affordable accommodation, particularly the exorbitant rent increases and illegal charges imposed by some agents. Practices such as demanding caution fees, inspection fees, and finder’s fees, beyond the legally stipulated agent commission, were highlighted as detrimental to the industry’s integrity and harmful to tenants. The government stressed the need for collective action to enforce existing laws and regulations, including the 2015 Tenancy Law and the Lagos State Real Estate Regulatory Authority Law, which stipulate a maximum of 10% agency fees on real estate transactions.
The Lagos State Government underscored its commitment to promoting a fairer and more sustainable rental market. Recognizing the imbalance between housing supply and demand, the government seeks to implement measures that will alleviate the pressure on tenants. One such initiative is the promotion of monthly and quarterly rent payments, as stipulated by the tenancy law, to ease the financial burden on residents. This approach aims to make rent payments more manageable and prevent the exploitation of tenants through demands for upfront annual or biennial rent payments. The government emphasized its resolve to create a more balanced real estate ecosystem, ensuring that both tenants and property owners operate within a framework of fairness and legality.
The representatives of NIESV, REDAN, and AEAN expressed their willingness to collaborate with the government in addressing the challenges plaguing the real estate sector. They acknowledged the need for greater professionalism and ethical conduct within the industry and pledged their support for initiatives aimed at enforcing existing laws and promoting best practices. These professional bodies recognized their critical role in shaping the market and committed to working alongside the government to create a more transparent and equitable real estate landscape. They pledged to actively participate in advocacy and public enlightenment campaigns to educate stakeholders on their rights and responsibilities.
The stakeholders’ meeting resolved to further broaden the scope of engagement by including other critical players in the real estate sector, including the Nigerian Bar Association. This expanded forum will ensure a holistic approach to tackling the housing crisis, leveraging the expertise and influence of various stakeholders. The collaborative efforts will focus on educating the public about existing laws, advocating for ethical practices, and implementing strategies to balance the supply and demand dynamics in the real estate market. The ultimate goal is to create a more affordable and accessible housing market for all Lagosians.
This comprehensive strategy, involving collaboration between the government and professional bodies, aims to address the multifaceted challenges in the Lagos real estate market. The focus on enforcement of existing laws, promotion of flexible rent payment options, and public enlightenment campaigns will contribute to a more transparent and equitable environment. The ongoing dialogue and collaborative efforts demonstrate the government’s commitment to finding sustainable solutions to the housing crisis and ensuring that all Lagosians have access to decent and affordable accommodation. This collaborative approach recognizes the importance of shared responsibility in creating a thriving and sustainable real estate sector that serves the needs of all stakeholders.
