The Nation Newspaper

Category: Building & Properties

  • Mortgage lending hits six-year high

    Mortgage lending in the United Kingdom (UK), rose to its highest level in six years at the end of last year.

    But, first-time buyers returned to the housing market, figures from banks and building societies showned last week. However, the number of new buyers is still much lower than before the credit crunch, and the data came as separate official analysis showed how far the number of young homeowners has collapsed over the past decade.

    Despite a slowdown in sales in the final three months of the year and fears tighter rules on lending introduced in April would slow the market, an estimated £205.6billion was lent during the year, the bulk of it for house purchases, the Council of Mortgage Lenders (CML) said. It was an increase of 17 per cent on 2013’s figure of £176billion and the highest level of lending since 2008. The increase was driven by strong lending in the spring and summer as confidence returned to the housing market, driving up activity and prices in many parts of the country, and lenders became more willing to offer loans to borrowers with small deposits.

    The CML’s Chief Economist, Bob Pannell, said the number of first-time buyers had increased in 2014, but remained below the high seen in 2007. “First-time buyers were a key driver, helped by government initiatives such as Help-to-Buy. As a result, the number of first-time buyers topped 300, 000,” he said. “While a far cry from the half-million that we might regard as ‘normal’, this was the highest number of first-time buyers since 2007.”

    Analysis by the Office for National Statistics, also showed how young people have dropped out of home ownership over the period since 1980. The report revealed that as recently as 1991, around 65 per cent of 25-to-34-year-olds in England had bought their own home, but by 2012 – the latest figures available – the percentage had declined to less than 45 per cent. Among 35-to-44-year-olds, the proportion of owners was also down sharply, from almost 80 per cent to around 65 per cent. The report showed that through the 1980s and into the 1990s one in three 16-to-24-year-olds could afford to buy their own home, compared with one in 10 today.

    The ONS said the number of UK first-time buyers peaked nearly three decades ago in 1986, when more than 600,000 young people climbed on to the property ladder.

    •Culled from The Guardian UK

  • Land title: Real estate investors’ headache

    Land title: Real estate investors’ headache

    Stakeholders are happy about the prospects of a good return on investment  in real estate this year, but the difficulty in regularising title documents may be a problem, reports MUYIWA LUCAS.

    Stakeholders are upbeat about the prediction of a huge Return On Investment (ROI) in real estate in the coming years. However, a recent report by the World Bank may just be enough caution for prospective investors.

    It said: “Nigeria is one of the most expensive and difficult places to register and acquire property for businesses in the world.”

    This revelation was contained in  a Word Bank Group, document, entitled, ‘Doing Business in Nigeria 2014’ under the section ‘Understanding Regulations for Small and Medium-Sized Enterprises.’

    According to the report, an investor in the country’s real estate sector has to go through 11 processes over 78 days, and also pay 15.8 per cent of the value of the property before a transfer of property can be achieved. This situation has made the country to be rated as one of the most difficult and expensive places to register property in the world.

    The report which based its submission on findings obtained from the 36 states and Federal Capital Territory, Abuja, held that the easiest place to register a property is Zamfara State, where the process takes just about nine processes, 31 days, and eight per cent of the property value. In Abia State, it takes 13 stages, 108 days, and 15.9 per cent of the property value.

    The World Bank report blamed the delays recorded in trying to register property on government bureaucracy, saying “the time is largely dependent on a single requirement: the state Governor’s consent, which accounts for 65 per cent of the total time required, on average. The delay varies from four days in Gombe to six months in Anambra, or Keffi.”

    But this is not all. Further findings revealed that apart from the search, consent, registration and stamp duty fees charged, legal fees account for almost half of the total cost to register property. It further stated that the registration fee varies from N2, 500 in Akwa Ibom State to five per cent of a property value in Bauchi, Kano, Sokoto and Taraba States.

    Several reasons can be adduced for this trend. According to lamudi.com.ng, an online real estate publication, several people are oblivious of some statutory laws that have been enacted and established by both the state and federal government aimed at regulating, guiding and governing all forms of land and landed properties’ transactions in the country.

    These regulations, it further explained, became necessary because land and landed properties’ transactions,-  ownership, sales, acquisition, lease, mortgage, alienation, assignment/conveyance, sublease, are a contractual relationship between two or more persons for exchange and release of interest they have on land and landed property in consideration for a compensation, which is usually of monetary value in nature.

    It is therefore, for the protection of all parties involved in any, or all of the above mentioned transactions and making such transactions legal and tenable in any court of law, that made the government to enact some statutory laws to guide, govern and protect all persons who find themselves embarking on any of these lands and landed properties’ transactions. They include the ones for revenue generation purposes.

    Some of these statutory laws governing land/property transactions,  include the Land Use Act; Land Instruments Registration Laws; Registration of Titles Acts; Rent Control and Recovery of Premises Acts; Tenancy Law of Lagos State; Tenement Rate Laws and Land Use Charge Law of Lagos State.

    The land instrument registration law, enacted to regulate registration of instruments that are executed prior to, and after the establishment of the Act in Nigeria, incorporates items such as an estate contract, a deed of appointment or discharge of trustee, containing expressly or impliedly a vesting declaration affecting any land. It seeks to guarantee genuine land title documents that have been investigated and registered by the Registrar of Titles in each state of the federation.

    This is compulsory for any holder of an interest in land, who wishes to transfer same to another person, to have registered such document at the appropriate Land Registry Office as it will assist purchasers of such land in determining if the owner/seller has the genuine land title document to sell the property and all encumbrances that are attached to the land.

    To authenticate the transfer of title, the owner is expected to apply for the Governor’s consent to the Deed of Assignment, which is being executed by both the seller and buyer in such a scenario.

    In the case of the Land Use Act, it basically vests the ownership of all the land in the country in the government, who in turn leases it to individuals or corporate bodies as appropriate for a period of 99 years.

    But experts and stakeholders have faulted these laws, blaming them for being responsible for the difficulty in securing mortgage for housing finance in the country. Experts have at various times expressed concern over the poor state of housing finance, especially by public institutions, which are put at about 10 per cent. Sadly, mortgage banks are said to contribute about two per cent to this, while contribution from banks and other institutions is insignificant. This is a worrisome trend given that in developed climes, housing finance is synonymous with mortgage system.

    The Principal Partner, Imole-Ayo Real Estate, kayode Oyedele, said with a faltering mortgage system, home ownership in the country is realised by almost 100 per cent savings from the owners’ purse. He said this is in contrast with what obtains in other countries, such as South Africa, where an estimated 40 per cent of housing finance is sourced from mortgage institutions. Financial experts and real estate developers, agree that the low mortgage contribution to  housing finance can be linked to the cumbersome and unfriendly land administration in the country.

    Lending his voice to the impact of mortgage financing on real estate, UACN Property Development Company (UPDC) Plc Managing Director, Hakeem Ogunniran, identified five drawbacks to housing finance. He said these  include cost, character, capacity, collateral and conditions. He is of the view that the problem with land registration and titling, is   more of a systemic issue than anything else, explaining that the system is people-driven and not process-driven.

    He suggested that there should be a “one-stop-shop” for perfecting titles which should be business-like.

    As a way forward, the Managing Director, Resort Savings and Loans Plc, Abimbola Olayinka, said the Land Use Act should be used to empower the people and not as an economic and political tool by states’ chief executives, adding that the Act should be expunged from the Constitution so that it could be easily tinkered with.

    Olayinka is of the opinion that land administrators should adopt what he called, “three-one-three strategy” for land registration. This means that land titles should be perfected in three days at one central place, and at the cost of three per cent of the value of the land.

    Real estate operators and players in the financial sector are of the view that eliminating the bottlenecks created by the land and property laws and regulations will go a long way in encouraging mortgages.

    They are quick to cite the Ghanaian example, which was said to be a “dysfunctional land administration, long and expensive procedures,” that lasted up to five years and involving six different agencies supervising the process, leading to inefficiency of the system.

    But following its reforms, property registration in the country was cut to 34 days and queues at the Lands Commission disappeared, making it possible for the mortgage sector to thrive. And following further improvement to the system, today, it takes 10 days to register a property in Ghana.

    A similar experience happened in Egypt, where  high fees and inefficient government agencies that hindered the process of real estate was eliminated by reducing property registration fees; simplifying the registration process, thus encouraging citizens and companies to obtain titles.

    Stakeholders are of the view that following the steps of such countries, would go a long way in ameliorating the mortgage finance problems in Nigeria.

  • Lagos gets first lease-to-own housing scheme

    Lagos gets first lease-to-own housing scheme

    Lagos State Governor, Babatunde Fashola has inaugurated the first phase of the Co-operative Home Ownership Incentive Scheme (CHOIS) City residential estate in Agbowa-Ikosi . The initiative, which comprises 280 two-bedroom semi-detached bungalows and 180 three-bedroom semi-detached, is  private sector initiative  aimed at addressing the housing deficit in the state.It  also represents government’s first step in its planned lease-to-own scheme.

    Fashola said the project, a partnership between state government and First World Communities expected to provide 10,000 homes, will complement government’s effort in community development under the CHOIS. The ability to become a landlord in this initiative will be tied to the occupant’s income. According to Fashola, there are many people in the society who need a home and can get loan from their employers. He however said such people have been hampered because there are no houses to buy, while some, he noted, also need the support of government to become landlord. “This is what the Lagos State Mortgage Homes and CHOIS City are meant to address. This is our first establishment of lease-to-own that involves gradual payment in which after 15 years, one will become the owner,” Fashola explained.

    The private developer of the scheme and President of First World Communities, Brig-Gen Tunde Reis, (rtd), said the first phase of the project, comprising 10,000 homes, would be built across the three senatorial districts of Lagos State, with the core aim of delivering housing for the low and medium income households in sustainable communities through lease-to-own schemes.

    Fashola said: “The pilot project, CHOIS Garden, developed at Abijo Government Reservation Area (GRA) along the Lekki-Epe Expressway is to have over 2,000 homes with over 500 already built and allocated. Agbowa’s target is 4,000 homes, Epe-Ibeju is 1,000 while Badagry axis is to cover 3,000 homes. All in such a way that ability to afford it is tied to one’s income and continued prosperity.”

    Reis said an advantage of this scheme is the ease of payment available to prospective owners. This is because once a prospective buyer pays 10 per cent of the total purchase price for his choice house, he is entitled to take possession of the house. This payment serves as the initial deposit and upon the completion of payment, in the form of rent, the home ownership and title passes on to the buyer.

  • Girl, 14, builds $10,000 house

    Building a house from scratch, even a tiny one, is not for the faint at heart, but 14-year-old Sicily Kolbeck has proven she has what it takes to see her passion project through against overwhelming odds. Kolbeck, from Marietta, Georgia, started work on her diminutive dwelling, lovingly dubbed La Petite Maison, when she was 12.

    At the time, the girl was searching for an outside-the-box idea for a school project when she stumbled upon a sizable online community of DIY builders specialising in downsized homes.

    Sicily had no construction experience beyond re-purposing a large TV box as a playhouse for herself, but her father, Dane, volunteered to help, CNN reported.

    Her mother, Suzannah Kolbeck, who was also her teacher and the founder of her school, signed up as Sicily’s project manager, but the girl was to act as the chief architect, builder and fundraiser on the project.

    Sicily got the project off the ground by launching an online fundraising campaign in January 2013. Within less than a month, she exceeded – her $1,500 goal.

    ‘My decision to build a tiny house was partly economic,and partly out of the desire to be free,’ Sicily Kolbeck wrote in the description.

    ‘Building a house would give me the life skills that really matter, such as using tools for construction. Building the house I can know what efforts go into a home and truly appreciate what I am living in.’

    Around the same time, Sicily launched the blog La Petite Maison to offer updates on her progress.

    The 12-year-old and her father, a sailor and woodworking enthusiast, got down to work, drawing blueprints for her future dwelling and erecting a birdhouse and scale models for practice.

    After some initial growing pains, the father-and-team team got the hang of working together, with Dane Kolbeck learning how to restrain himself and allow his daughter to do it her way.

    On her part, the plucky 12-year-old quickly picked up the construction jargon from her dad and learned how to safely use his power tools.

    Then on February 16, everything ground to a halt: Sicily’s father was killed in a car accident.

    As her mother wrote on her daughter’s blog two months later, Dane’s untimely passing caused Sicily to lose interest in the project. Not before long, Sicily and her mother were overwhelmed with support from loved ones and neighbors who would stop by the house to lend a hand with the myriad of tasks that go into building a house.

     

     

    But Dane Kolbeck’s passing left a profound mark on Sicily: she was sullen and distracted in school, no longer as engaged in softball as before and lacking zest for life.

    To get away from it all, Suzannah and Sicily went on a five-week road trip, staying with friends in the mid-Atlantic region and enjoying long drives, just the two of them.

    When they returned home in time for the start of a new school semester, Sicily made up her mind to finish what she and her dad had started.

    This time, however, the now-13-year-old aspiring builder appealed to the boarder community, from other tiny-home aficionados on Facebook to experts and friends eager to pitch in.

    Many people volunteered their time, among them a roofer who put a top on Sicily’s humble abode free of charge; a retiree who instructed her in the art of wiring the house, and other homebuilders who showed Sicily how to plumb her kitchen and bathroom.

    What started as a school project over time blossomed into a 128-square-foot labor of love, as well as a tribute to Sicily’s father.

    Despite her tender age, Sicily Kolbeck showed everyone that she was dedicated to the project and determined to see it to completion, putting in long hours, navigating challenges and problem-solving on the fly like a seasoned pro.

    ‘It wasn’t until later … probably these past couple months that I realized why I’m doing this,’ Sicily said. ‘I’m doing it to show him that I can do stuff, to show him that I am capable and he doesn’t need to yell at me when I can’t use the drill.’

    Last December, Sicily traveled to New Orleans to give a speech at a TEDYouth conference, talking to other teens about the joys and challenges of tiny-home construction – and healing.

    Around the same time, she was asked to pen a first-person account about her experiences for the Huffington Post.

    ‘Sometimes when people get a hard knock, they stay down. I didn’t. That’s my claim to fame,’ she wrote. ‘I also wanted to show that when I was handed lemons, I not only made lemonade. I made a lemon cake. And I ate it. And it was delicious.’

    Last month, Sicily announced on her blog that her wooden masterpiece boasting a bedroom, fully functioning kitchen and bathroom, a closet and storage cubbyholes, was finally finished.

    From start to finish, it took Sicily and her many helpers a year-and-a-half of labor and $10,000 to get the job done.

    The charming little bungalow painted royal blue with a white trim for now sits in the Kolbecks’ backyard in Marietta.

    The girl, now 14 years old, is already thinking of her next makeover project: rebuilding a rickety, old Volkswagen Beetle.

    …culled from MailOnline

     

  • Firm launches Phase 2 of N1.4 b estate

    Firm launches Phase 2 of N1.4 b estate

    After the completion of the first phase of its estate development project,Cornerstone Real Estate Limited, has begun work on the second phase on Kudirat Abiola Way in Oregun, Lagos.The project is a joint venture between the firm and a prominent Lagos family. It is on a-five acre land comprising  26 units. The funding of the N1.4 billion project was arranged by Texas Global LLC and Mutual Benefit Assurance Plc.

    A breakdown of the units include   14-unit of houses, consisting of two three-bedroom detached houses with one-room boys’ quarters; six four-bedroom semi-detached houses with one-room boys’ quarters; and six three-bedroom terrace house.

    The duplex sits on an approximate land area of 400 square meter each with four bedrooms, all en-suite. The ground floor space area includes entrance lobby, foyer, main living room, dining, kitchen, visitors’ toilet and an en-suite guest room.

    The first floor space area includes the family lounge with balcony, two bedrooms and the masters’ bedroom, all en-suite; spacious living and dining areas with exquisite wood work, well-finished wardrobes and kitchen cabinet; plaster of Paris (PoP) ceiling and stainless steel aluminum railings. These features are also available in the terrace units.

    Its Managing Director, Mr. Lanre Okupe,  said the firm is offering 20 per cent discount to the first five buyers in the scheme to serve as an incentive for potential buyers.

    Such buyers must, however, pay inblock for the units they choose. The duplex sells for N85 million; the terrace goes for N75 million. There is however an opportunity for installmental payment through first installment payment of 30 per cent of the unit value at the onset; second installment of 30 per cent at lintel level; third installment of 30 per cent at roofing level and the balance of 10 per cent at the finishing level. The completion period for any unit is 12 months.

    “While installmental payment is allowed, there is however an opportunity for the first five buyers to buy at 20 per cent discount off the regular price of N85 million and N75 million at this promotional period. This means that duplex will sell at N68 million and terrace units will sell at N60 million each if the buyer is paying outright. Also, an allottee who pays 30 per cent deposit and settle  the balance within 180 days will qualify for N10 million saving on the unit bought,” Okupe explained.

    Presently, the completed phase one of the scheme has been sold out with only one unit available for reallocation.

    In a similar vein, Okupe said the firm’s Ofada Estate, located in Ogun State, presents another investment opportunity for investors, especially at this crucial period of oil price crash, which necessitates wise investment.

    The Cornerstone Estate in Ofada Town, is a 50-acre property divided into two phases. The first phase is a developed 15-acre land comprising of 10 units of three bedroom bungalows; 14 serviced plots are available here at N2 million per plot, while the bungalows sells for between N7million and N8.5 million. The carcass, that is, uncompleted bungalow, sells for N5.5 million; each of the units sits on between 500 – 600 square metres. Facilities in the serviced plots area include perimeter fencing, tarred estate road network, borehole water, good drainage system, PHCN transformer and internal reticulation and street lights.

    The Phase two of the Ofada Estate is an undeveloped 35 acres of land, selling at N5.3 million per acre or N900, 000 per plot. Okupe said potential buyers in this scheme, can make a deposit of 20 per cent and pay the balance over a 24-month period.

    “For discerning investors, this is a unique opportunity for wise investment given the location of the property and the high return on investment potentials it has,” he said.

    Indeed, with the high cost of land in Lagos, and the attendant high cost of rent, peripheral areas to the state have become an option for prospective house owners.

  • The shape of things to come

    The shape of things to come

    How can Nigeria reenergise its economy in the face of falling oil prices? Experts are voting for the property market, which they say can drive the Gross Domestic Product (GDP) this year, MUYIWA LUCAS writes.

    The United Nations (UN) predicted that between 2010 and 2030, a growth of 113.4 million  would be recorded in Nigeria’s population.

    This increase is greater than the combined population of Ghana, Kenya and Tanzania in 2010. But a twist to the forecast for the country, which was perhaps not envisaged so soon, is the emergence of Nigeria as the largest economy on the continent, a feat that has been it overtaking South Africa.

    As at last April, the rebased Gross Domestic Product (GDP) was estimated at N80.22 trillion  ($509billion), leading to ranking as the world’s 26th largest economy with a per capita income rising from $1,555 to $2,688. To ensure that Nigeria remains on top, the Nigerian Financial System Strategy (FSS 2020) has been developed to attain the country’s goal of reaching a GDP of $900 billion by 2020.

    For the government, the continuous fall in the international crude oil price poses a great danger for this dream.This is because oil revenue constitutes about 90 per cent of government’s revenue. Now, to continue to make this dream a reality, especially with the tumbling oil market, the government and, indeed, investors will now have to look at other areas of investments this year.

    One area that will prove fertile for investment is the real estate sector.This is because since the recovery from the global economic meltdown in 2009/2010, the property sector has witnessed resurgence, particularly in the south.

    Also, a New World Wealth report buttresses this position. The report says there are more than 200,000m² of retail development  under construction, particularly concentrated in the south. The projects include Port Harcourt Mall measuring 11,000m2 and the Owerri and Delta Malls measuring 12,000m² and 15,000m².

    According to the Federal Government, the real estate sector  contributes about 15 per cent of the rebased GDP, while the growth recorded in the domestic real estate sector on a yearly basis stood at 11 per cent in 2012. Therefore, investing in housing, experts reckon, is considered to provide a significant multiplier effect on the broader economy as it contributes to GDP through two main drivers – private residential investments and consumption spending on housing.

    These activities will be more pronounced in Lagos State, going by a report by Agusto & Co. – a Pan-African credit rating and research agency, which reported that activities in Lagos account for at least 40 per cent of the real estate market.

    The UN has also predicted that with about 58 million people moving to cities in sub-Saharan Africa this decade, Nigeria will be at the heart of the continent’s urbanisation.

    These predictions may have spurred the Federal Government’s planned massive investment in the housing sector, an initiative that is billed to commence this year. The Minister of Lands, Housing and Urban Development, Mrs. Akon Eyakenyi,  presented what she described as  housing roadmap for the country. Though the document is still awaiting the government’s ratification it seeks to provide about one million housing units per year over the next 30 years.

    Under this initiative, the private sector is to provide 800, 000 housing units yearly, while the Federal Government will provide the remaining 200,000 units.This makes for ample investment opportunities for the private sector, on whose shoulders the sector squarely lies.

    Experts said given the poor records of the government over the years to provide affordable and sufficient accommodation for the citizens, the private sector may have to provide more than the 800, 000 units in the initiative.This reasoning is right going by the fact that in the last four years, the Federal Government, through its various housing agencies and parastatals, have been able to build a paltry 43,126 housing units nationwide.

    A boost for investment in the real estate sector this year is also captured in a report by Lamudi Real Estate Agents. In a survey by Lamudi last year, 81 percent of respondents agreed that there is a great demand for more houses and apartments in the country, while 52 per cent said more than one million new units are required to meet yearly demand.

    But to ensure that the sector brings good and speedy return on investments this year, property developers will have to consider building truly affordable houses which will be within the earning capacity of the middle and low income class.

    Lamudi further revealed that the majority of housing units targeting the country’s middle income earners are priced at between N20million and N35million, whereas their earning capacity is between N30, 000 and N100, 000  monthly.

    In this regard, the Nigerian Mortgage Refinance Company (NMRC) is expected to play a vital role by providing funds to facilitate housing development.

    An interesting development across the country has been the rise in capacity and execution of state-level property development corporations in both residential and increasingly commercial developments.

    The real estate is also expected to take advantage of the crude oil situation to impact well in the stock market. Experts say while the share value of some oil firms are falling as a result of a slide of crude oil price, the real estate firms would benefit from divestments. This means there is likely to be more players in the real estate sector of the capital market, which may likely swell the number from 10.

    Dolapo Omidire, in her analysis for Estate Intel, a real estate online survey firm, noted that of the 10 listed real estate firms in the capital market, four, including Julius Berger, UPDC REIT, UAC Property Development Company and Union Homes REIT account for 96 per cent of the sector’s market capitalisation; with Julius Berger alone accounting for 57 per cent at the end of 2014, with a market capitalisation of over N80 billion.

    Omidire noted that of the 10 listed, UPDC is the only property developer, while the other three are run-of-the-mill REITs, demonstrating that the listed real estate sector is still very rudimentary when compared to the New York Stock Exchange, where hundreds of REITs, real estate service providers and real estate investment funds/firms are listed.

    Though the sector accounts for 1.22 per cent of the market capitalisation; that is, N139 billion of N11trillion at the end of last year, it is expected that this will increase in the year.

    The beginning of construction works for the Centenary City development in Abuja is expected to impact on the sector. The project will include 260 luxury villas, 265 apartment buildings, 139 office buildings, 308million high mixed use Africa square and tower, five major retail centres and much more.

    Much as the year holds bountiful return for investors, experts say this could only happen provided government, developers, construction firms and financial institutions work together to ensure the success and development of the sector.

  • Why housing gap hasn’t been bridged, by stakeholders

    Why housing gap hasn’t been bridged, by stakeholders

    Operators and stake -holders have suggested  ways of moving the sector forward.

    Rising from a workshop on the Fourth National Council on Lands, Housing and Urban Development in Uyo, the Akwa Ibom State capital, participants said there was need to scale up the national cadastral and township mapping.

    This would be by facilitating the provision of Continuously Operating Reference Station (CORS), adopting singular mapping control network and establishing an Enterprise Geographic Information System (GIS) for the country.

    The theme was Creating enabling environment for private sector participation in affordable housing delivery in Nigeria. The forum   agreed that the Office of Surveyor-General of the Federation should be supported to provide at least one CORS Station in four states to fast-track cadastral mapping and create an Enterprise Geographic/Land Information System (GIS/LIS). They called for a National GIS/LIS summit shouldbe organised early this year to enable the placement of state and various agencies’ GIS to operate on the same template  to facilitate inter-operability.

    Approval was also given for the use of exchange of letters,  supported by a survey plan, signed by the state surveyor-general.This is to serve as a uniform and standard instrument for transfer of land between the states and the Federal Government to overcome the procedural and administrative lapses.

    The exchange of letters is to be circulated to the states before the end of the first quarter of this year for their input to ensure uniformity of application.

    The workshop, which was presided over by the Permanent Secretary, Federal Ministry of Lands, Housing and Urban Development, Mr. George Ossi, had in attendance 182 delegates (including 23 commissioners responsible for lands, housing and urban development matters in the states, as well as 159 senior officials of relevant federal and state Ministries, Departments and Agencies (MDAs), representatives of professional/regulatory bodies, and other stakeholders).

    At the end of deliberations, the Council adopted some resolutions on some issues.

     

    Housing finance

    It was noted that despite the significant progress made by the Federal Mortgage Bank of Nigeria (FMBN) and management of mortgage industry, the bank is still constrained by the failure of some states to embrace the National Housing Fund (NHF) Scheme, non-passage of critical mortgage related bills, and delay in the recapitalisation bank, urging the six  non-participating states (namely Lagos, Kano, Ondo, Ekiti, Edo and Oyo) to return to the NHF Scheme. The Federal Government was also implored to consider the  recapitalisation of FMBN.

     

    Adequate /affordable housing delivery

    The Council noted that there were serious factors militating against delivery of the housing stock in Nigeria. It added that Public-Private Partnership (PPP) projects could be better deployed in overcoming impediments to affordable housing delivery if the government comes up with policies to overcome the challenges of high cost of land, transfer fees and registration processes as well as promotes training of labour, provision of ancillary infrastructure and recapitalisation of mortgage institutions.

    Besides, it also noted the need to promote the unfolding paradigm shift in national housing delivery by further creating the enabling environment for private sector participation in affordable housing with special emphasis on the use of renewable energy sources and energy-efficient appliances as viable options for reducing the costs of buildings.

    It urged the need to set up a Special Purpose Vehicle (SPV), anchored on Home Ownership Property Development Cooperative Societies driven by partnership with land donors, cooperative members as ‘off-takers’, contractors, investors/financiers, shareholders, Primary Mortgage Institution (PMIs), and Bank of Industry (BoI) as  practised by Ondo State Development and Property Corporation.

    The council regretted that the impact of the housing deficit is, particularly grievous on the low income group, resulting in more urban slums and higher crime rates, and approved the setting – up of a Joint Action Task Team (JATT) of stakeholders to work out the modalities for implementing the proposed Social Housing Programme.

     

    Urban development

    The council praised the proactive initiatives of the Federal Ministry of Lands, Housing    and Urban Development towards the preparation of the National Physical Development Plan(NPDP) aimed at engendering sustainable and integrated development of the nation as well as ensuring regional balance and optimisation of the use of national resources.

    It also urged the populace to desist from engaging the services of non-town planning professionals in carrying out town planning functions, urging the state governments and other key stakeholders to further support and collaborate with FMLHUD in its efforts to prepare and produce the first National Physical Development Plan (NPDP) as well as its efforts at eradicating slums across the country.

     

    Others

    Other issues raised in the communique include that the National Building Code Advisory Committee had concluded action on the review of the National Building Code and that the approval of the Code by the Federal Executive Council (FEC) is awaiting the incorporation of additional input by other MDAs and relevant stakeholders as suggested by FEC. Approval of  the draft housing roadmap outlining the sets of actions to be undertaken for the sustainable Transformation of the Housing and Urban Development Sector in Nigeria over a 30-year period (2014-2044).

    Also, the forum gave approval to MDAs to demand for Council of Registered Engineers of Nigeria (COREN) Licence as a condition for the pre-qualification of engineering frirms, offering services in engineering contracting, manufacturing/ production, fabrication/repair/maintenance, service provision, and as vendors of engineering machinery, equipment, plants and materials.

  • Residents reject plans to turn Regent’s Park Crescent into apartments

    A group of 200 residents have rejected plans to turn an elegant stucco crescent close to Regent’s Park into apartments.

    The group, including several elderly tenants, fear the impact on their health from being “trapped” in the middle of extensive building works planned by developer PCW Property Holding.

    The residents have jointly rejected the proposal to completely redevelop the John Nash-designed Park Crescent West, which surrounds their 60s-built block.

    PCW Property, which is backed by a group of investors and counts Mike Jatania — one of Britain’s richest Asian businessmen — as a non-executive director of its development company PCW Planning and Development, bought the site for £105 million last year and submitted plans in May to turn the offices at the crescent into 64 flats and build eight houses in green space behind it.

    Tenants in the block at 22 Park Crescent — within the 2.4-acre scheme – argue the redevelopment of the 19th century crescent building will lead to about five years of massive disruption, will deprive them of the green space at the bottom of their homes, block their natural light and will be sold to wealthy overseas investors who may leave them empty.

    Carlo Seidel, director of 22 Park Crescent, which manages the block, said: “Many of our residents are elderly, have limited means, and would feel abandoned by Westminster city council if, despite the listed status of the Regency-style buildings, the plans were approved.”

    A spokesman for PCW said: “We are continuing detailed consultations with residents and are sensitive to their concerns. During the construction phase we will do our best to minimise disruption to residents.”

    PCW said it was targeting “UK persons” as buyers and will “appeal to families looking to downsize”.

    Widow Catherine Osborne, 79, who has lived in a flat at No. 22 for more than 12 years, said: “I have developed a lung disorder which will inevitably deteriorate.”

     

    •Culled from London Evening Standard

  • Lagos family warns land speculators

    The Osu-Apena family has warned land and property   owners in Mushin community, Lagos State to beware of speculators who may approach them to renegotiate their properties.

    The family, through its spokesman, Alhaji Gaffar Raheem Apena, also spoke on its part-ownership of the Ojuwoye communal land in Mushin.

    The spokesman said the warning became imperative following a Supreme Court judgment allegedly being used by the Odu-Abore and Aileru families to claim ownership of the land.

    According to Apena, the action of the said families is a mis-interpretation of the apex court’s judgment about the property as it was a pronouncement on two plots of land being occupied by two individual members of the Apena family and not binding on the entire family since they were not parties to the suit.

    “The Supreme Court judgement was won on two plots of land at 28, Cash Street, Olorunsogo, Mushin, and 33, Amu Street, Olorunsogo, Mushin, and not on the entire land belonging to the Apena family. So the judgment was against two individual members of the family- Ramoni Rufai Apena and Jimoh Rufai Apena; and not the entire family,” Gaffar explained.

    He said the Osu-Apena family has  instituted a fresh suit to stop the claims of the Odu-Abore and Aileru families, who, he said, falsely claim ownership to the communal land and also that the two plots of land built fell on their family portion of the land.

    Gaffar blamed the pleadings of the defence lawyers, which he said were grossly inadequate, leading to the loss of the case. He said six families owned the Oju-Woye communal land. They include Osu-Apena, Osu-Olowu, Ajose, Odu-Abore, Asesewon and Aileru.  Gaffar explained that sometime ago, a daughter of Odu-Abore, Dada Iyalode, once gave evidence at a trial to the effect that Odu-Abore was neither the founder nor owner of Ojuwoye community.

    The statement further averred: “The Osu-Apena family of Ojuwoye cannot because of the negligence of the lawyers that handled the case for two of our family members sit on the fence and let go of what belongs to the family. Having sensed the insincerity, mischief and callousness on the part of Aileru and Odu-Abore families to encroach on the land of not only the Osu-Apena family but that of other families that constitute Ojuwoye, the family has decided to institute a suit with the Lagos State judiciary in order to stop these two families from parading themselves as the only families that constitute Ojuwoye community.The new suit no is ID/7960/2014.”

    Last year, the Osu-Apenas being dissatisfied, appealed against the judgment of the Court of Appeal, Lagos wherein the lower court set aside the judgment of the High Court. They appealed on six grounds of which four were dropped based on the rejection of their argument to own a large parcel of land situated at Amu Street, Mushin, Lagos State by the apex court.

    In their depositions in court, the Odu-Abore and Aileru families said the land was first inhabited by them. According to them, their progenitors gave customary licence to one Osu-Apena, the grand father of the appellants (Romoni and Jimoh) for farming.

  • Fed Govt, firm sign $80m housing deal

    Fed Govt, firm sign $80m housing deal

    THE Federal Government and the Dubai based Signature Value Homes (SVH) have signed an $80million housing deal.

    Under the deal, 300 houses will be provided in Abuja within six months in the provided first phase. The project is expected start next month. Minister of Lands, Housing and Urban  signed on the government’s behalf.    Mr. Anand Ramani signed for SVH.

    According to the Minister of Lands, Housing and Urban Development, Mrs. Akon Eyakenyi, Messers Signature Value Homes Limited Submitted an unsolicited proposal of intent to develop affordable mass housing under the Public Private Partnership (PPP) Contractors finance initiative

    On November 10, 2014, the company was said to have made a technical presentation to the FMLHUD. The minister disclosed that after the due diligence carried out by the  PPP Unit, it was discovered that the company has  the  financial capacity to undertake the project. This is one of the initiatives through which the ministry builds mass housing, providing land for developers to build according to agreed specifications.

    The project on a 20 hectares land at Gwagwalada, is a mixed development that will comprise one bedroom , two bedroom and three bedroom flats on ground, plus three upper level floors comprising approximately 1,672 dwelling on the ministry’s land at Gwagwalada  FCT.

    Mrs. Eyakenyi said the PPP Unit  considered ministry’s the proposal visitable and therefore recommended it for Federal Capital Terrtory (FCT) Minister of state.

    Federal Capital Territory (FCT) Minister of State Oloye Akinjide praised the minister  for what she termed “uncommon transformation” of the housing sector in Nigeria.  She said that FCT Adminitration has confidence in the quality of houses provided by the ministry because of what is has done with  other projects.

    Messrs Signature  Value Homes Limited is a mass housing project developer that specialises in providing holistic solutions for integrated community development. The company has a history of successful execution of projects in India and Sub- Sahara  African countries and are also engaged in mass housing development with the Niger State government. The company has local partnership with Stallion Group Nigeria, technical and engineering partnership with Mahindra Consulting Engineers and construction partnership with Klassic International.