Lagos State Government has taken a strong stance against the illegal fees in the real estate sector, urging a reduction in rent prices and a crackdown on unlawful charges like caution fees, inspection fees, and finder’s fees.

The move aims to support residents struggling with rising rent and foster transparency in the property market.

In a statement, Ganiu Lawal, the Deputy Director of Public Affairs, highlighted the issue of professional misconduct in the industry: “The introduction of illegal fees such as caution fee, inspection fee, finder’s fee, and others represents a professionally harmful practice which affects tenants and puts the integrity of the practitioners and property owners at stake.”

The state government has engaged professional groups, including the Nigerian Institution of Estate Surveyors and Valuers, the Real Estate Developers Association of Nigeria, and the Association of Estate Agents in Nigeria, to work towards reducing the number of agents involved in fee collection and to address arbitrary rent increases.

Lagos State’s Commissioner for Housing, Moruf Akinderu-Fatai, emphasized the government’s commitment to addressing the rising cost of rent:

“The aim of engaging all stakeholders is to strengthen the working relationship between the State Government and the professional bodies for the benefit of Lagosians.

We are concerned about the challenges faced by families in securing and retaining rental accommodation in the state, with unpleasant rent increments and illegal estate transaction charges.”

The government also expressed its intent to encourage flexible rent payments, such as monthly and quarterly options, to ease the financial burden on tenants.

This initiative is part of the state’s broader effort to curb illegal fees and ensure fair practices in the real estate sector.