• Warns against rent control
• Says high interest rates, quacks, cost of materials fuelling housing crisis

The Nigerian Institution of Estate Surveyors and Valuers (NIESV), Ondo State branch, yesterday, stressed that without a decisive move by the government to boost enough housing schemes in the country, Nigerians will continue to face a relentless surge and exorbitant hike in house rents.

The professional body, while advising against any attempt by the government to impose rent control measures, emphasised that such interventions would be counterproductive and further worsen the country’s housing deficit rather than resolve it.

The state Chairman of the body, Dr Joseph Akintomide, who spoke during a media briefing to herald the NIESV Week, identified insufficient housing schemes, high interest rates, high cost of building materials, and the activities of quacks as primary drivers of the current housing crisis in the country.

According to Akintomide, who revealed activities lined up for the weeklong events, the law of supply and demand remains the most effective mechanism for regulating house rents, warning of the dangers inherent in artificially solving the issue.

He said, “You cannot control what does not belong to you. Government’s attempt to regulate rates is not the appropriate way to approach it. Let the government see housing as a social service, and let the government invest heavily in residential estates. Where there is sufficient supply to meet the demand, basic causes of demand and supply will naturally bring rents down.

“Let the government approach it the right way and make funds available for real estate development at single-digit interest rates so that property development becomes affordable. The third approach is the cost of building materials. It is garbage in, garbage out. If the cost of building materials is high, the output cost will also be high. We have to be realistic with ourselves.

“Demand will continue to be higher than supply. So, let the government work on the area of supply. If sufficient supply is provided, rent will come down naturally.”

The NIESV chairman also raised concerns about the proliferation of unqualified practitioners in the property management sector, describing their activities as detrimental to both investors and tenants.

Akintomide, therefore, urged the public to desist from patronising quacks, urging the government to demonstrate leadership through the use of local materials in public projects, thereby building public confidence in indigenous building products.