The Lagos State government is advocating for a reduction in rental prices and has declared certain charges, such as caution fees and inspection fees, as illegal. The government has called on the leadership of the Nigerian Institution of Estate Surveyors and Valuers, the Real Estate Developers Association of Nigeria, and the Association of Estate Agents in Nigeria to support efforts to alleviate the rent burden on residents and to eliminate prevalent illegal fees in the real estate sector.
In a statement from Ganiu Lawal, the Deputy Director of Public Affairs, it was noted that the introduction of illegal fees like caution fees, inspection fees, and finder’s fees represents a harmful practice that affects tenants and jeopardizes the integrity of practitioners and property owners.
The state government convened a meeting with these professional bodies, co-chaired by the Commissioner for Housing, Moruf Akinderu-Fatai, and the Special Adviser to the Governor on Housing, Barakat Odunuga-Bakare. The session aimed to curb arbitrary rent charges and high agent fees while promoting professionalism in the Lagos real estate market.
Akinderu-Fatai expressed concern over the challenges families face in securing affordable rental accommodations, highlighting the unpleasant increases in rent and illegal transaction charges. He reiterated the government’s commitment to encouraging monthly and quarterly rent payments in accordance with tenancy laws.
The Special Adviser on Housing also pointed out existing laws, such as the 2015 Tenancy Law, which limits chargeable fees to no more than 10% on real estate transactions. They urged stakeholders to cooperate with the state government to improve the conditions under which Lagosians secure housing.
Representatives from various real estate organizations expressed their readiness to collaborate with the state government to address high rental costs and excessive charges. They agreed to work together on advocacy and public awareness programs regarding best practices in real estate transactions.
The meeting concluded with plans for another stakeholders’ forum, which will include representatives from all sectors involved in the real estate business, including the Nigerian Bar Association, to foster comprehensive support for Lagos residents.
