Governor Babajide Sanwo-Olu has announced that by next year, a new policy would be introduced for monthly tenancy on property occupancy in the state.
Sanwo-Olu disclosed this at the Lagos Real Estate MarketPlace Conference and Exhibitions organised by the Lagos State Real Estate Regulatory Authority (LASRERA).
The governor explained in a statement signed by his spokesperson, Gboyega Akosile, that the idea is not to punish the landlord or to reduce the expected revenue of the property owner.
“By next year, Sanwo-Olu said a new policy of monthly tenancy on property occupancy would kick off in Lagos. The concept, he said, is not to punish the landlord or reduce the expected revenue of the property owner.
“He said monthly tenancy would ease off the pressure of yearly rent on tenants, as the new policy is designed to make people pay their rents according to their monthly earnings. The policy, Sanwo-Olu said, emanated from an agreement reached by the association of tenants, a consortium of financiers, and the Government,” the statement read in part.
In his remarks on the high affordability of property in Lagos, the Governor noted that the state’s partnership with the private sector raised the housing stock, but added that the non-availability of long-term mortgage bonds prevented low-income earners from taking advantage of the increased housing supply.
A new financing model is being developed, he said, to reduce the burden on mortgage applicants while also charging real estate developers to reduce the cost of development by leveraging local talents for skills outsourced to foreigners.
“We should not just build property only for consumers, we must also build skills and integrate them in our built environment to showcase great output. Technical and vocational skills are things we must deliberately harness and reflect in our work. At the end of the day, we must be able to design a housing development and ownership model that is fit for our purpose and peculiar to our local needs,” Sanwo-Olu said at the event.