Lagos Unveils New Tenancy Bill to Regulate Rent Hikes and Agency Fees

Lagos Targets Housing Market Abuses with New Tenancy Legislation

The Lagos State Government has unveiled plans for a new tenancy law aimed at curbing arbitrary rent increases, excessive agency charges and fraudulent practices within the real estate sector. The proposed legislation, currently before the Lagos State House of Assembly, forms part of broader efforts to improve housing affordability, strengthen transparency and restore confidence in Nigeria’s largest urban property market.

Speaking during the 2026 Ministerial Press Briefing in Alausa, Ikeja, Lagos State Commissioner for Housing Moruf Akinderu-Fatai said the bill seeks to address long-standing concerns over exploitative rental practices and unregulated estate agency operations across the state.

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Government Targets Excessive Rent and Agency Charges

The proposed tenancy bill comes amid mounting pressure on Lagos residents facing rising accommodation costs, multiple transaction charges and limited access to affordable housing. In many areas across the state, tenants are often required to pay substantial agency fees, legal fees and advance rent payments in addition to already elevated rental prices.

According to the commissioner, the government intends to tackle arbitrary rent hikes and illegal charges that have become increasingly common within the property market. State authorities reiterated that estate agency fees should not exceed 10 per cent of annual rent, while some versions of the proposed reform framework have suggested even stricter commission caps.

The move reflects growing concern over the affordability crisis in Lagos, where rapid urbanisation, population growth and supply shortages continue to drive up housing costs.

Mandatory Registration for Estate Agents

A major provision within the proposed legislation would require all estate agents operating in Lagos to register with the Lagos State Real Estate Regulatory Authority (LASRERA). Operating without registration would become a punishable offence once the bill becomes law.

Government officials said the measure is intended to reduce fraudulent practices frequently associated with unregistered operators, including fake property listings, multiple sales of properties and excessive commission charges imposed on tenants and home seekers.

According to the Housing Commissioner, LASRERA has intensified enforcement activities in recent years and reportedly recovered more than ₦270 million from fraudulent estate agents between 2025 and 2026.

Faster Resolution of Tenancy Disputes

The proposed law also seeks to improve dispute resolution processes between landlords and tenants. Officials disclosed that tenancy-related cases may be heard during weekends and public holidays to accelerate judicial proceedings and reduce delays in the court system.

In addition, tenants seeking legal action against landlords may be required to provide evidence of rent payments and updated utility bills before initiating proceedings. Authorities say the approach is intended to encourage accountability and streamline tenancy litigation processes.

Legal analysts note that faster dispute resolution mechanisms could reduce prolonged conflicts within the rental market and improve confidence among both landlords and tenants.

Housing Affordability Pressures Continue to Grow

Lagos remains one of Africa’s most expensive rental markets relative to income levels, with accommodation demand significantly outpacing supply. Rising construction costs, inflation, infrastructure deficits and high land acquisition expenses have all contributed to sustained increases in rental prices across the state.

Housing stakeholders argue that while regulatory reforms may help curb exploitative practices, broader structural issues such as inadequate housing supply and financing constraints will still require long-term policy interventions.

Some industry participants have also warned that excessive market controls could discourage investment in residential real estate if implementation is not carefully balanced.

Stakeholders React to Proposed Reforms

The proposed tenancy reforms have generated mixed reactions among landlords, tenants, lawyers and estate practitioners.

Tenant advocacy groups and housing rights stakeholders largely welcomed the initiative, arguing that stronger regulation is necessary to protect residents from exploitation and reduce transaction costs associated with renting accommodation in Lagos.

However, some real estate professionals and property investors have expressed concerns about potential overregulation, warning that restrictive policies could affect market flexibility and discourage private-sector housing investment.

Despite these concerns, the state government maintains that the proposed law is designed to improve transparency, accountability and fairness across the housing sector.

Outlook

The Lagos State Government’s proposed tenancy bill represents one of the most significant housing policy interventions in the state in recent years. If enacted, the legislation could reshape relationships between landlords, tenants and estate agents while introducing stricter oversight of rental transactions and brokerage activities.

As the bill progresses through the Lagos State House of Assembly, stakeholders across the property sector will continue to monitor its provisions and potential implications for housing affordability, investment and real estate regulation. The effectiveness of the reforms will likely depend on enforcement capacity, stakeholder cooperation and broader efforts to expand affordable housing supply across Lagos.

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