The Lagos State Government has said the existing tenancy law is discouraging many property owners from renting out houses every year, a development officials say is worsening housing shortages across the state.

The Special Adviser to Governor Babajide Sanwo-Olu on eGIS, Olajide Babatunde, disclosed this during the annual ministerial press briefing marking the seventh year and second term of the administration.

According to Babatunde, many landlords have become reluctant to offer apartments for yearly tenancy because of difficulties associated with recovering properties from defaulting tenants under the current legal framework.

He explained that several houses across Lagos remain unoccupied as landlords increasingly prefer long lease arrangements instead of conventional yearly rentals.

“There are many houses in Lagos that are empty because landlords do not want to rent them out yearly or monthly. They prefer long leases because they are not certain they can recover their property easily if tenants default,” he said.

Babatunde noted that the proposed tenancy bill currently before the Lagos State House of Assembly is aimed at addressing the concerns of both landlords and tenants while restoring confidence in the housing market.

He said the state believes that creating a more balanced and faster dispute resolution process would encourage more investors and homeowners to release vacant properties into the rental market.

Under the proposed law, tenants seeking legal action against landlords would be required to show evidence that all outstanding rents, service charges and utility bills have been paid before approaching the court.

He added that tenants would also be expected to continue paying rent while disputes are being determined in court, especially in cases involving disagreements over rent increments.

According to him, the reforms are intended to end situations where tenants stop paying rent while remaining in properties during prolonged legal disputes.

He further stated that the bill contains provisions to ensure tenancy-related cases are resolved within defined timelines to prevent unnecessary delays.

Babatunde expressed optimism that once passed into law, the reforms would reduce housing deficits, encourage investment in residential development and make more houses available for yearly tenancy across Lagos.