Lagos moves to tackle high rent, excessive agency fees with new tenancy bill

Residents of Lagos may soon experience relief from soaring rent costs and exploitative housing charges as the state government advances a new tenancy bill designed to reform the real estate and rental sector.

The proposed legislation, currently before the Lagos State House of Assembly, is expected to introduce stricter regulations for estate agents, strengthen tenant protections and establish faster mechanisms for resolving tenancy disputes across the state.

The Commissioner for Housing, Moruf Akinderu-Fatai, disclosed the development during the 2026 Ministerial Press Briefing held in Alausa, Ikeja, stating that the bill had already progressed to the committee stage at the Assembly.

According to the commissioner, the government decided to pursue the reforms following growing complaints from residents over fake property listings, multiple sales of the same property, inflated agency charges and fraudulent real estate transactions.

He explained that the proposed law would make registration with the Lagos State Real Estate Regulatory Authority (LASRERA) compulsory for all estate agents and property practitioners operating in the state.

Under the proposed framework, agents who fail to comply with registration requirements or violate the regulations would face penalties once the law takes effect.

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Akinderu-Fatai said many Lagos residents had suffered financial losses after dealing with unregistered and fraudulent agents, adding that the government intends to sanitise the sector and restore public confidence in the housing market.

“The new system is designed to ensure transparency and accountability within the real estate sector while protecting tenants and property buyers from exploitation,” he said.

As part of the reforms, the tenancy bill is also expected to introduce faster methods for handling housing-related disputes.

The commissioner disclosed that weekend and public holiday court sittings may be introduced specifically for tenancy matters in order to reduce delays in dispute resolution and improve access to justice for both landlords and tenants.

However, tenants seeking legal redress under the new arrangement would be required to provide evidence of rent payment as well as updated utility bills before their complaints can be entertained.

The government also reiterated that agency fees charged by estate agents in Lagos must not exceed 10 percent of the total rent, warning that violators would face sanctions under the proposed law.

Akinderu-Fatai revealed that LASRERA recovered more than N270 million from fraudulent estate agents between 2025 and 2026 through enforcement and regulatory operations across the state.

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He added that enforcement activities against illegal operators had already been intensified as part of efforts to clean up the sector ahead of the bill’s eventual passage.

Housing experts say the proposed reforms could significantly reshape Lagos’ property market if effectively implemented, especially in a city where accommodation shortages and high demand have contributed to rising rent prices and unregulated agency practices.

A Lagos-based real estate analyst, Tunde Balogun, noted that mandatory registration of estate agents could improve professionalism and reduce fraud in the sector.

“For years, many residents have been victims of fake agents and arbitrary charges because there has been weak enforcement. If the government implements this law properly, it could bring greater transparency and accountability to the market,” he said.

Another housing consultant, Mrs. Funke Adeyemi, said the introduction of faster tenancy dispute resolution mechanisms would also ease pressure on tenants struggling with lengthy court processes.

“Many tenants avoid pursuing legal action because tenancy cases can drag on for months. Special sittings for housing disputes could help improve confidence in the justice system,” she explained.

The Lagos State Government reaffirmed its commitment to promoting affordable housing, transparency and stronger regulation of the real estate sector as the state continues to grapple with rapid urbanisation and increasing housing demand.