Recession: Lagos To Give Out Houses On Rent To-own
As part efforts to cushion the biting effects of economic recession in the country, Lagos State Government on Thursday said it has concluded plans to start giving out houses built by the state government on rent to own basis.
The state’s commissioner for Housing, Prince Gbolahan Lawal who stated this at a press conference on the pre-launch of the schemes at the Bagauda Kaltho Press Centre, Lagos State Government secretariat said the Rent-To-Own and Rental Housing Policies of Governor Akinwunmi Ambode’s administration is aimed at making housing more readily affordable and accessible for Lagosians.
According to him, the schemes listed to include Sir Michael Otedola Estate, Odoragunshin-Epe; CHOIS City, Agbowa; Alhaji Adetoun Mustapha Estate, Ojokoro and Oba Adeboruwa Estate, Igbogbo-Ikorodu will be launched simultaneously next week.
Lawal said accessing housing units in the state has been largely on cash and carry basis which ends 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 can still not afford to become home owners as they are unable to meet the requirement of 30 per cent equity contribution which the mortgage scheme demands”, he said.
The commissioner said government has 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.
He emphasized that shelter is one of the basic needs of man, saying that is why governments all over the world accord top priority to the provision of housing for their citizens.
Lawal said inadequate housing is responsible for so many health and social ills in the society, adding that, “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 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.
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 program. “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 assured that selection process will be credible, fair and transparent, saying units in the rent to own scheme spread across the state ranges from one bedroom to three bedroom flats while unit price ranges from N1.5m to N25m depending on location and type.
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