Lagos targets low income earners, artisans in housing scheme

The Lagos State Government has said that low and middle income earners as well as artisans in the informal sector will be catered for in his new housing scheme popularly known as the “rent-to-own” policy.

The state’s Commissioner for Housing, Prince Gbolahan Lawal, disclosed this last week, saying the Rent-To-Own and Rental Housing Policies of Governor Akinwunmi Ambode’s administration was aimed at making housing more readily affordable and accessible for Lagosians.

According to him, the schemes listed for the programme include Sir Michael Otedola Estate, Odoragunshin-Epe; CHOIS City, Agbowa; Alhaji Adetoun Mustapha Estate, Ojokoro and Oba Adeboruwa Estate, Igbogbo-Ikorodu, adding that it will be launched simultaneously on Thursday, December 8, 2016.

Lawal said accessing housing units in the state had been largely on cash and carry basis which often ended up excluding majority of the citizenry until when recently the mortgage scheme was introduced.

“Even though the mortgage scheme was able to accommodate more people on the home ownership ladder, a large number could still not afford to become home owners as they were unable to meet the requirement of 30 per cent equity contribution which the mortgage scheme demands,” he said.

He said government had always been challenged by the arduous task of providing affordable and decent accommodation for the people of the state in view of its ever growing population which reflected in the various housing schemes developed by different administrations over the years.

Lawal said inadequate housing was responsible for so many health and social ills in the society, adding that, the rent-to-own policy was targeted at the low and medium income earners in both the formal and informal sectors.

“Under this arrangement, individuals are required to pay five per cent of the value of the housing unit as commitment fee and the balance is spread over 10 years. The programme allows the tenant to live on the property while paying towards ownership as a fixed rent within the period of ten years.

“The Lagos State rental housing policy is to further ensure housing accessibility and affordability in Lagos state. The rent for the rental housing will be collected on a monthly basis. The tenants are however required to pay one month deposit,” he said.

He explained that the rent to be paid would be determined by the prevailing rent in each of the locations while mode of payment would be direct debit by the employer/banker to ensure easy collection, just as he stressed that the rented accommodation is not transferable.

“This scheme 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 per cent of the available housing units in each of the dedicated rent-to-own estates for rental housing,” the commissioner noted.