Lagos moves to curb arbitrary rent hikes, targets fraudulent agents with new tenancy bill

The Lagos State Government has unveiled plans to introduce a new tenancy law aimed at curbing arbitrary rent increases, illegal charges and other exploitative practices in the real estate sector.
The state Commissioner for Housing, Hon. Moruf Akinderu-Fatai, disclosed this during the ministerial press briefing commemorating the third year of Governor Babajide Sanwo-Olu’s second term in office.
According to the commissioner, the proposed tenancy bill, currently before the Lagos State House of Assembly, seeks to address growing complaints over excessive rent hikes, arbitrary agency fees and fraudulent activities by unregistered estate agents across the state.
Akinderu-Fatai said the bill, now at the committee stage in the Assembly, would introduce far-reaching reforms aimed at sanitising the housing and real estate sector in Lagos.
He explained that one of the major provisions of the proposed law would make it compulsory for all estate agents operating in the state to register with the Lagos State Real Estate Regulatory Authority (LASRERA).
The commissioner noted that operating as an estate agent without registration would become a punishable offence once the bill is passed into law.
He said the measure was designed to tackle the activities of unregistered agents accused of exploiting tenants through excessive charges, multiple sales of properties and other fraudulent dealings.
Akinderu-Fatai further revealed that the proposed law would also fast-track tenancy disputes by introducing weekend and public holiday sittings for tenancy-related matters.
He added that the law, when enacted, would apply uniformly across all parts of Lagos State without exemptions.
The commissioner disclosed that tenants intending to institute legal action against landlords would be required to present proof of rent payments as well as updated utility bills before approaching the court.
According to him, the state government remains committed to restoring sanity, transparency and accountability in the real estate sector while protecting residents from exploitation.
He also revealed that LASRERA had intensified enforcement against fraudulent operators, recovering over N270 million from fraudulent estate agents between 2025 and 2026.
Akinderu-Fatai reiterated that the Lagos State Government had consistently maintained that estate agency fees should not exceed 10 per cent of the total rent payable by tenants.
He assured residents that the Sanwo-Olu administration would continue to pursue policies aimed at making housing transactions more transparent, affordable and investor-friendly across the state.