1st December, 2016
Kazeem Ugbodaga
The Lagos State Government on Thursday said it will formally flag off its Rent-To-Own and Rental Housing policies on 8 December, 2016.
Commissioner for Housing, Prince Gbolahan Lawal disclosed this at a news conference in Ikeja, Lagos, Southwest Nigeria, saying that the current administration came up with the Rent-To-Own policy and Rental Housing policy in order to increase the number of Lagosians that had their feet on home ownership ladder.
He said 12 housing estates had been dedicated for the implementation of the Rent-To-Own policy, which included: Sir Michael Otedola Estate, Odoragunshin, Epe; CHOIS City, Agbowa Odo-Onosa, Agbowa; Alhaja Adetoun Mustapha Estate, Ojokoro; Hon. Olaitan Mustapha Estate, Ojokoro; Egan-Igando Housing Estate, Alimosho; Igando Gardens, Igando – Alimosho; Oba Adeboruwa Estate, Igbogbo – Ikorodu; Igbogbo IIB Housing Estate, Igbogbo – Ikorodu; Iponri Estate, Iponri – Surulere; Sangotedo Estate, Sangotedo – Eti-Osa and Ajara Estate, Badagry.
The commissioner said the policy was to be launched on the 8 December, 2016 simultaneously at Sir Michael Otedola Estate, Odoragunshin, Epe; CHOIS City, Agbowa; Alhaja Adetoun Mustapha Estate, Ojokoro and Oba Adeboruwa Estate, Igbogbo – Ikorodu.
“The Rent-To-Own policy targets the low and medium income earners in both the formal and informal sectors. Under this arrangement, individuals are required to pay 5% of the value of the housing unit as commitment fee and the balance is spread over 10 years. This programme allows the tenant to live on the property while paying towards ownership at a fixed rent within the period of 10years,” he explained.
On the Rental Housing policy, Lawal said the initiative was initiated by Governor Akinwunmi Ambode to further ensure housing accessibility and affordability in Lagos State, saying that the rent for the rental housing would be collected on a monthly basis as the tenants were however required to pay one month deposit.
“The rental housing is targeted at the working class and people with regular source of income who may not want to participate in the Rent-To-Own or Mortgage programme. Government intends to earmark 20% of the available housing units in each of the dedicated Rent-To-Own estates for Rental Housing.
“The rent to be paid will be determined by the prevailing rent in each of the locations while mode of payment will be Direct Debit by the employer / banker to ensure easy collection. Rented accommodation is not transferable,” he stated.
Lawal explained that the government came up with these policies as the state had always been challenged by the arduous task of providing affordable and decent accommodation for the people in view of its ever growing population.
“This is reflected in the various housing schemes developed by different administrations over the years. Accessing the housing units has been largely on cash and carry basis thereby excluding majority of the citizenry until recently when the Mortgage Scheme was introduced.
“Even though the Mortgage Scheme was able to accommodate more people on the home ownership ladder, a large number can still not afford to become home owners as they are unable to meet the requirement of 30% equity contribution which the mortgage scheme demands,” he stated.