Lagos Rent to Own scheme lifts rental market with 4,355 housing units

In an ambitious move to address its housing challenge which carries demand-supply deficit conservatively estimated at three million units, the Lagos State government entered the rental market at the weekend with 4,355 housing units as it formally launched its Rent-to-Own housing scheme.

The scheme is the state’s new initiative aimed to enable homeownership by encouraging its ‘homeles’ (first time home seekers) to rent houses from its available stock and start paying rents for same for a period of time at the end of which the ‘tenant’ owns the house.

The launching of the scheme took place at various locations including the Sir Michael Otedola Housing Estate, Odoragunsin, Epe, where the state governor, Akinwunmi Ambode, performed the ceremony.

The governor who was represented at the event by his deputy, Idiat Adebule, assured that the 4,355 housing units in 12 Housing Estate located in the three Senatorial Districts  of the state would  be dedicated to the new scheme.

He hinted that the launching of the scheme commenced with immediate implementation with 1,072 housing units in Epe, Agbowa, Ojokoro and Ikorodu, adding, “80 percent of the available housing units will be operated under the scheme, while the remaining 20 percent will be dedicated to Rental Housing Scheme.

Gbolahan Lawal, the state’s Commissioner for Housing, explained that the scheme was put in place to increase the number of Lagos residents that have their feet on home ownership ladder, disclosing that the scheme was targeted at the low and medium income earners in both formal and informal sectors.

“Under this scheme, individuals are required to pay 5 percent 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 its ownership at a fixed rent within the period of 10 years”, Lawal said.

He hinted that a total of 12 housing estates including Sir Michael Otedola Estate, Odoragunsen, Epe, Odo Onasa, Agbowa, Igbogbo Housing Estate, Ikorodu, Egan -Igando Housing estate, Alimoso, Igando Gardens housing Estate, also in Alimoshoa had been dedicated for the implementation of the scheme

Other estates for the scheme are CHOIS City, Agbowa, Olaitan Mustapha  Housing Estate, Ojokoro, Iponri Estate, Surulere, Sangotedo Estate, Eti-Osa and Ajara Estate, Badagry.