EKO NEWS

Sanwo-Olu Unveils Plan For Monthly Tenancy Scheme

Published

3 years ago

Dec 9, 2021.

…the governor explained that the concept is not to punish the landlord or reduce the expected revenue of the property owner.

EKO HOT BLOG reports that Lagos State Governor, Babajide Sanwo-Olu has said by next year, a new policy for monthly tenancy on property occupancy would commence in the state.

The governor disclosed this at the Lagos Real Estate Market Place Conference and Exhibitions organised by the Lagos State Real Estate Regulatory Authority (LASRERA).

According to a statement issued by the governor’s spokesperson, Gboyega Akosile, the governor explained that the monthly tenancy scheme is not to punish the landlord or 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.

Addressing the cause of the high affordability of property in Lagos, the Governor said the State’s partnership with the private sector had raised the housing stock but added that the non-availability of long-tenure mortgage bonds made it impossible for low-income earners to benefit.

The Government, he said, is thinking out of the box to design a financing model that would reduce the burden on mortgage applicants, while also charging real estate developers to reduce the cost of developing property by engaging local competence 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.

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