CEM REPORT, REAL ESTATE | It’s no news that the cost of living in the country is hitting the roof, this also includes rent. With rising inflation which is eroding income value, meeting up with rent payments is becoming tougher by the day. Average Nigerian now cut several basic needs to save up to meet housing rent obligations or risk homelessness.
To combat this, former Minister of Works and Housing, Babatunde Fashola, has called for a renewed focus on expanding the rent-to-own schemes.
Fashola, advocating the need for enhancing existing rent-to-own schemes at both the federal and state levels, noted that financial constraints hinder many individuals from purchasing homes outright, making rent-to-own programs a crucial solution.
“The sad but painful truth is that not everybody will be able to afford to buy a house, but I strongly believe that rental housing for all is possible, not only based on how we build but also how people pay rent.”
Speaking at the 50th-anniversary celebration of the Federal Housing Authority (FHA), Fashola, proposed alternative financing options, such as diaspora bonds and mortgages tailored to the informal sector, as flexible and innovative models to expand access to homeownership.
He proposed exploring cost-effective construction methods and leveraging technology to streamline processes and reduce administrative costs to address affordability concerns. He also emphasized the importance of public-private partnerships in mobilizing resources and expertise for housing development.
Emphasizing the need to safeguard the long-term durability of housing units, he advocated for the implementation of comprehensive maintenance systems. He suggested investigating preventive maintenance approaches and promoting a sense of tenant accountability to reduce housing wear and tear.
Fashola called for the Federal Housing Authority (FHA) to adopt a more commercially focused strategy, adhering to robust corporate governance principles aligned with international best practices. He advocated for prioritizing smaller, more budget-friendly housing options to meet the demands of young professionals and families with limited financial means. Fashola also encouraged the creation of mixed-income housing projects to promote social cohesion and reduce social fragmentation.
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He further called on state legislators to enact laws that streamline rent payments, aligning them with wages and salaries, while stressing the need to incorporate local knowledge and preferences to ensure that housing solutions are tailored to the specific needs of each community.
“Instead of abandoning the rent-to-own initiatives that started in the last administration, there is scope for improvement in expanding these schemes at Federal and State levels.
“We must also increase advocacy for state legislators to make laws that make the payment of rent convenient and convergent with wages and salaries,” Fashola stated.
