The Lagos State government has said it will prohibit collection of yearly payment from tenants by landlords and other owners of landed property from next year.
Governor Babajide Sanwo-Olu disclosed that the move was part of effort to lift the burden of financial pressure that came with yearly payments of by tenants, noting that his administration will consequently enforce a monthly tenancy on property occupancy from 2022.
Sanwo-Olu made the disclosure during the inauguration of 744 units Lagos Home Ownership Mortgage Scheme (Phase one) in Sangotedo on Tuesday.
Pampamnews reports that, While reiterating his government commitment to addressing housing issues in the state, Sanwo-Olu said those who had need for decent shelter but can’t afford to buy a house of their own will not be left to the whims and caprices of players in the real estate market.
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Sanwo-Olu said âThe state government is set for the enforcement of a monthly tenancy on property occupancy from 2022. It is confirmed that the percentage of residents depending on tenancy arrangements for housing in Lagos State is quite high.?
âWhile building homes for those with home ownership dreams, we are also determined to cater for numerous others who may not have plans to own homes but have immediate needs for decent shelter.?
âThe monthly tenancy is a pro-people plan to reduce financial pressure of yearly rent on tenants. The goal of this policy is to equate rental arrangements with a mode of earning which is by and large monthly.â?
Sanwo-Olu added that a legislative review was ongoing to reduce rent default.?
âWe have talked through this policy and an agreement has been reached by representatives of tenants, financiers and the state government. This however should not be a cause of discontent or alarm for landlords or real estate agencies. Adequate legislative review is being done to ensure that rental default is reduced to the barest minimum,â Sanwo-Olu added.