FG Asks Landlords To Reduce Rents Charged On Properties
The Minister of Power, Works and Housing, Babatunde Fashola, on Tuesday in Abuja lamented that while a lot of Nigerians lacked accommodation, many houses in the country were unoccupied.
He therefore charged property owners to reduce the rents and the value they attach to properties in view of the current economic hardship in the country.
Fashola, who stated this at the inauguration of board members of the Estate Surveyors and Valuers Registration Board of Nigeria, ESVARBON, disclosed that the values of properties and rents in other countries are falling with respect to the global economic downturn.
His words, “For me, I think the most important message I’ll like to share at this inauguration is to pose the question on whether the current land valuation system and values are consistent with the reality of our economy. You as experts must answer that question because we have a very challenging economy.
“Just recently, I checked the property markets in some other jurisdictions and because there is a global economic slowdown, what we see is that people are offering discounts in order to ensure optimum occupancy. But I’m not sure that the practice is the same here.
“So are these values consistent with the realities? Why are we not seeing rates, rents and values drop? Why are we having many houses unoccupied when people are looking for accommodation? The argument sometimes has been that properties are valued higher so that it can have impact on percentages and commissions.”
The minister requested members of the board to work with the Federal Government in coming up with answers to these questions, adding that they must consider the prevalent economic situation in the country in coming up with answers.
He was categorical that the ESVARBON officials must work out ways of tackling the problem of high house rents and advance payments, particularly in major cities of the country.
