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Abolishing advance rent won’t solve housing crisis

By Yinka Kolawole
First Vice-President, Nigeria Institution of Estate Surveyors and Valuers (NIESV), Mr. Bode Adediji has said that the proposed bill to abolish advance collection of rents in Lagos State is not the solution to the housing problem in the state.

Morgage Housse
Morgage Housse

It would be recalled that the Lagos State government recently sent a bill to abolish advance rent to the State’s House of Assembly.
Adediji however said at a recent forum in Lagos, that  that the government should rather take steps to enhance the financial infrastructure of housing, noting for instance, that house owners can easily be convinced to restrict their charges to monthly or six-monthly rentals if guaranteed long term funds with minimal interests are available to them.

He however noted that implementation of government proposal on this has been difficult as a result of the regime of high cost of building materials and interest rate in the country.

According to him, it is with a view to lowering their exposure to risk and indebtedness that landlords resort to collection of multiple rents as soon as their buildings are completed, even sometimes before completion.

The estate surveyor however admitted that demanding multiple rents is not healthy for the economy but rather emphasizing the need to search for the solution to the problem brought about by the financial model used in many real estate developments.

Adediji called for the dedication of line of credit for real estate development from medium to long term and also the need to tackle the cultural mechanism that allows people to owe institutions and individuals while parading their wealth without fulfilling their obligations. He cautioned that promulgating a law to coerce landlords to charge monthly or yearly rent may end up as only a paper law that cannot be implemented.


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