The average rental price in Lagos State has increased between 20 per cent to 37.5 per cent depending on the location.
Checks by Investors King showed that rental cost in Lagos State has been on an astronomical rise in the last two years. Houses in areas such as Lekki have increased by almost 40 per cent. However, the increase of houses on the mainland is between 20 to 30 per cent.
Our correspondent gathered that several people living in Lagos spend at least 60 per cent of their annual income on rent. Unfortunately, the increase in house rent coupled with the rising inflation has significantly affected many Lagosians.
Some of the landlords and rental agents which our correspondent spoke to blame the rising cost of rent on the increase in cement price, other building materials and construction costs.
It could be recalled that cement price has risen from N2,450 in 2021 to N4,200 in 2022.
Our correspondent also learnt that the cost of land has also increased in almost all parts of Lagos States. In some places like Epe and Ajah, the increase was almost 100 per cent.
The cost of a two-bedroom flat in Lekki is between N2.5 million to N3.5 million per annum.
In Ajah, it will cost between N1.5 million to N2.5 million.
Besides, some landlords and estate agents demand a rent of two years from tenants despite a law that prohibits such.
Section 4 of the tenancy law of Lagos State 2011 prohibits an excess of more than 12 months as rent. Although there is punishment attached to any breach of this law as stated in section 5, Landlords nevertheless exploit the impetus of the house seekers because of the high demand.
Section 5 stated that “Any person who receives or pays rent above what is prescribed in this Section shall be guilty of an offence and shall be liable on conviction to a fine of N100, 000 or to three (3) months imprisonment.”
Investors King further learnt that with the current state of the economy and the rising inflation which has limited the purchasing power of many, there could be an increase in the number of homeless people in Lagos State.
It is therefore imperative for the government to look into the excesses of the shylock agents. Most importantly ameliorate the challenges to stop any menace that might come with the increase of homelessness in Lagos State.