Tenancy Laws, Multiple Taxation And Residential House Rents

Tenancy Laws, Multiple Taxation And Residential House Rents

Chapiter 1

Introduction

1.1 History Of The Study

Lagos State, which is often referred to as the commercial hub of Nigeria, has the most active and expensive rental market in the nation, with tenants in its affluent neighborhoods paying a premium for homes while paying less for comparable homes in low- to middle-income neighborhoods. Other reasons, including as the Lagos Tenancy Law and several taxes, are driving up property rents in Lagos, in addition to the strong demand and poor supply, according to Akinlade (2014). The state government of Lagos established the Tenancy Law in August 2011 after realizing that the city’s population of over 21 million presented a significant housing burden. The law sets a one-year lease term for new tenants and a six-month term for existing tenants.

According to Akinlade (2014), the single-year rent payment regulation has hindered investment in rental homes and driven rent to a new level. He also noted that landlords are currently collecting two years’ worth of rent for one year in several areas of Lagos.He continued by saying that developers were forced to pay for land, planning and approval, the environment, council, and taxes through a variety of taxes.In Lagos, the battleground is access to land through government allocation. Even though the government claims that it will just take one to two months, planning clearance takes forever.

The Federal Government’s housing policies have not helped enough developers because it was nearly impossible for them to obtain bank credit, and those who were fortunate enough to receive loan offers had to provide over 150 percent in security for the bank to hold; additionally, the 25 percent interest rate on bank loans killed any developer’s business plan (Collins, 2003).

Other causes of the high rent include the sale of land owned by the Federal Government in Lagos, the high cost of local building materials, the high cost of fuel, which is reflected in the high cost of transportation and generators, the high cost of labor, and insufficient planning to make the most of the available land.

Lagos has experienced a major housing shortage for 30 years because there hasn’t been any available since Lateef Jakande’s rule from 1979 to 1983.The last governor of the state to successfully adopt and carry out mass rental housing plans was Jakande. For 30 years, Lagos people’ needs were disregarded by successive governments. Jakande also requested a study on Nigeria’s housing shortfall, which was estimated to be 16 million as of 2010 and is expected to increase to 20 million by 2020.

Affe (2008) argues that it is just and fair for the government to carry out its duties and provide citizens with meaningful lives. This proves the fact that the Lagos State Government created the Land Use Charge in order to earn money for the upkeep of current facilities and the construction of new ones. In keeping with this, the researcher is investigating the impact of Lagos State’s dual taxation on residential housing rent and tenancy law.

Statement of the problem: 1.2

Numerous real estate submarkets are forming as Lagos State develops into a multi-nuclei metropolis. Despite this, residential rent has been unusually high, particularly in several areas that are typically seen as more affluent, like Ikoyi, Victoria Island, Lekki-axis, Ikeja, Apapa, IsaleEko, and AmuwoOdofin. Researchers believe that a number of variables, including the Lagos State government’s tenancy law and several taxes, are to blame for the skyrocketing residential house rent in Lagos State. In this study, the impact of numerous taxes and the tenancy law on residential rent in Lagos State is being investigated.

1.3 Purpose Of The Study

The goals of this study are as follows:

to investigate how Lagos State’s tenancy laws affect the cost of housing for residents.

to research how Lagos State’s residential housing rent is affected by multiple taxes.

to determine other elements that affect Lagos State’s rental market.

1.4 Questions For Research

What impact does Lagos State’s tenancy law have on the cost of renting a home?

What impact does Lagos State’s system of numerous taxes have on the cost of renting a home?

What aspects affect residential property rent in Lagos State?

1.5 Hypothesis

HO: In Lagos State, tenancy legislation and numerous taxes have no bearing on the cost of renting a home.

HA: In Lagos State, tenancy legislation and different taxes do have an impact on rent for homes.

1.6 The Study’s Significance

The relevance of this study is as follows:

The results of this study will inform the public about how different taxes and tenancy law have impacted residential dwelling rent in Lagos State. It will also serve as a manual for decision-makers and the Lagos State administration on how to resolve the problem of people or corporate entities paying two or more forms of taxes concurrently.

This study will also act as a foundation for other academics and researchers interested in conducting additional research in this area, which, if put to use, might lead to the development of fresh explanations for the subject.

1.7.2 Study Scope And Limitations

The goal of this study is to determine how the Lagos State tenancy law and other related concerns of multiple taxation affect residential property rent.

1.8 Restrictions Of Study

Financial restraint: A researcher’s ability to collect data (through the internet, a questionnaire, and interviews) and locate relevant materials, literature, or information is often hindered by a lack of funding.

Time restraint: The researcher will do this investigation together with other academic activities at the same time. As a result, less time will be spent on the research project.

References

Affe M (2008). Land Use Charge: Fasola Requests Assistance from Quantity Surveyors. www.punchontheweb.com, Saturday Punch, 51: 1411

Infrastructure, in Collins, C., Advanced Learner English Dictionary, 41st ed. Harper Collins Publisher, London.

(2014) Akinlade IU. Property appraisal and valuation. BONPublications, Owerri. Nigeria’s Lagos State Official Gazette. Nigeria’s Lagos State Government. LSPC 566/72001/500 34: 20 Lagos State Printing Corporation, Keja