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Tuesday, January 31, 2023

Cost Of Land, Infrastructure Must Be Addressed For Housing To Be Affordable – Sanwo-Olu

Lagos State Governor, Mr. Babajide Olusola Sanwo-Olu has said the only way to make mass housing affordable is to address the cost of the components that increase the cost of the project.

Governor Sanwo-Olu, who stated this in his speech as special guest of honour at the Nigerian Institution of Building (NIOB) 31st builders’ conference in Lagos, recently, said the cost of land and infrastructure must be addressed for mass housing to be affordable.

He said, “All hands must be on deck to proffer solutions to the various challenges militating against provision of Mass Housing in the Country. Even when as a government or as private Investors, we are desirous of providing of mass housing, we are limited by challenges, such as affordability in terms of pricing of the homes and that of purchasing the property by the citizens as well as the sustenance/maintenance of the provided housing units or sometimes the cost and difficulty in the process of Title Documentation are issues I think this conference can begin to address.

“Land which ultimately increases the cost of the project and which in turn is reflected in the sale price should be addressed.

“More so, when the cost of infrastructure is considered as a major component in the overall project cost, then we need to find a way to ensure that mass housing becomes affordable,” said Sanwo-Olu, who was a Chief Executive Officer of Lagos State Development and Property Corporation (LSDPC), a real estate firm of the Lagos State Government.

The governor said, “Also, as professionals, we all know that the type of technology adopted for construction significantly impacts on the project cost just as statutory fees and charges in the area of Stamp Duty, Registration of Title, Physical Planning Fees, Tax and other Statutory Fees also aggregate into increased Cost of Purchase. Ladies and Gentlemen all these ultimately affects affordability in terms of purchasing the property by the citizens

“You may also want to deliberate upon how Citizens can have access to Mortgage Facilities through a thriving Primary Mortgage Market that is sustained by a Secondary Mortgage Market.

“As a Government, it gives me joy to stand amongst you, to inform you that in the past two years, the government of Lagos State has acquired an enviable reputation in implementing efficient, effective and sustainable Mass Housing policy through the Lagos State Home Ownership Scheme (LAGOSHOMS)

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“We are aware of the attendant impact of housing on the health and economic well-being of the citizenry such that it can generate a strong economic base for the productivity of our people, increase employment and even serve as collateral for financial transactions. Our target therefore is to facilitate a Housing Finance System that will produce a foundation for long – term growth.

“It is instructive to note that, we are making progress in Mass Housing provision in Lagos State and one of the strategic decisions of the administration is the unwavering quest to design and develop a mortgage system that supports affordable acquisition of the growing housing stock of the State. This does not only serve as a development driver of the vision to be Africa’s model smart city, it has also sharpened our focus to address the long-standing issue of housing deficit that can only be surmounted by an aggressive housing delivery programme.”

Source: ThisDay

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