In a recent press briefing held at the Lagos State Real Estate Regulatory Authority in Ikeja, Lagos, Barakat Odunuga-Bakare, the Special Adviser to the Lagos State Governor on Housing, unveiled plans to enforce the state’s monthly rental scheme.
Odunuga-Bakare disclosed that the implementation of the scheme is expected to commence before the end of 2024 or early next year. She emphasised the need to align Lagos with global practices, where rents are collected on a monthly basis. The proposed scheme aims to charge rental fees based on tenants’ earnings.
Highlighting the state’s commitment, Odunuga-Bakare revealed that the allocated N5 billion for the monthly rental scheme remains untouched. She assured that the government is working meticulously to perfect the initiative, with a focus on initially test-running it within the public sector before extending it to the private sector.
The move echoes Governor Babajide Sanwo-Olu’s stance articulated in 2021 during the 10th meeting of the National Council on Lands, Housing, and Urban Development. Sanwo-Olu advocated for a shift from the traditional yearly rental model to a more affordable monthly system, particularly beneficial for low- and middle-income earners facing financial strain due to annual rent obligations.
Sanwo-Olu emphasised the necessity of a regulatory framework to facilitate the transition to the new rental system. He highlighted existing initiatives such as the rent-to-own programme and announced plans for a purely rental scheme to cater to residents not participating in the state’s homeownership scheme.
Former Minister of Works and Housing, Babatunde Fashola, supported Sanwo-Olu’s proposal, citing the adverse effects of the yearly rental system on housing supply and affordability for low-income earners.
With these developments, Lagos State is poised to revolutionise its housing sector by embracing a monthly rental system, aligning with contemporary realities and addressing the needs of its diverse populace.
