1.1 Introduction
Housing is generally defined as the provision of shelter and the associated physical, social, economic, and environmental conditions that support human well-being. According to World Health Organization, adequate housing extends beyond the physical structure of a building to include security, affordability, accessibility, and a safe living environment. Housing remains one of the fundamental needs of humanity because it provides protection, privacy, security, and contributes significantly to social and economic development (WHO, 2018). Housing rents refer to the periodic payments made by tenants to landlords for the temporary use and occupation of residential or commercial property under agreed contractual terms. Rental housing plays a vital role in meeting the accommodation needs of individuals and families who are unable or unwilling to purchase their own homes.
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the aim and objectives of the study. Others are significance of the study, scope of work, research hypothesis and questions, limitation of the study and definition of terms.
1.2 Background of Study
Housing is universally recognized as one of the basic necessities of human existence because it provides shelter, security, privacy, and a suitable environment for healthy living. According to World Health Organization (2018), adequate housing is not limited to the availability of physical structures but also includes affordability, accessibility, safety, and legal security of tenure. Housing therefore contributes significantly to individual well-being, social stability, and national development. As societies continue to expand through urbanization and population growth, the demand for decent and affordable housing has increased considerably. This growing demand has intensified concerns regarding housing rents, taxation on real estate, and the legal frameworks governing landlord and tenant relationships.
Housing rent refers to the amount paid by a tenant to a landlord for the right to occupy a residential or commercial property for a specified period under agreed contractual conditions. According to Organisation for Economic Co-operation and Development (2021), rental housing provides an important alternative for households that are unable or unwilling to purchase homes, thereby promoting labour mobility and improving access to accommodation. Similarly, UN-Habitat (2020) reported that an efficient rental housing market contributes to economic growth by expanding housing opportunities and reducing pressure on home ownership. These observations indicate that rental housing remains an essential component of every nation's housing system.
The increasing cost of housing rent has become a major concern in many developed and developing countries. According to World Bank (2022), rapid urbanization, inflation, rising land values, increasing construction costs, and inadequate housing supply have significantly contributed to persistent increases in rental prices. Furthermore, International Monetary Fund (2023) asserted that inflationary pressures and rising production costs often translate into higher housing costs, thereby reducing affordability for low-income and middle-income households. As rental prices continue to rise, many families allocate a substantial proportion of their income to housing, leaving limited resources for education, healthcare, nutrition, and other essential needs.
Housing affordability has therefore emerged as a major policy concern across many economies. According to United Nations (2015), access to adequate and affordable housing forms part of the global commitment to sustainable development through the Sustainable Development Goals, particularly Goal 11, which seeks to make cities inclusive, safe, resilient, and sustainable. Likewise, World Economic Forum (2022) reported that affordable housing strengthens economic productivity, promotes social inclusion, and enhances overall quality of life. These perspectives demonstrate that affordable housing extends beyond accommodation and directly influences sustainable urban development.
Closely associated with housing rents and taxation are tenancy laws, which regulate the legal relationship between landlords and tenants. According to United Nations Human Settlements Programme (2019), tenancy laws establish rights and obligations relating to rent payment, maintenance of property, security of tenure, eviction procedures, and dispute resolution. Supporting this position, International Finance Corporation (2021) reported that effective tenancy regulations improve transparency in housing transactions, strengthen investor confidence, and protect vulnerable households from unlawful housing practices. A sound legal framework therefore provides certainty for both landlords and tenants while promoting stability within the rental housing market.
The interaction among housing rents, multiple taxation, and tenancy laws has significant implications for economic development and social welfare. According to World Bank (2023), efficient housing markets contribute to employment generation, investment growth, and poverty reduction by expanding access to affordable accommodation. Building on this perspective, UN-Habitat (2022) asserted that balanced housing policies promote inclusive urban development and improve living standards. When housing costs become excessive because of tax burdens or weak legal regulation, both property owners and tenants experience financial and legal challenges that may hinder sustainable urban growth.
The Nigerian housing sector reflects many of these global concerns. According to Federal Mortgage Bank of Nigeria (2022), the country continues to experience a significant housing deficit due to increasing population growth, rapid urbanization, inadequate housing finance, and limited supply of affordable residential properties. Relatedly, Nigerian Institute of Estate Surveyors and Valuers (2023) stated that rising construction costs, multiple statutory charges, and increasing demand for accommodation have contributed to persistent increases in rental values across many Nigerian cities. These developments have intensified the financial burden on tenants while discouraging investment in affordable housing projects.
This study is set against the backdrop of the growing concerns surrounding rising housing rents, the effects of multiple taxation on property ownership and investment, and the effectiveness of tenancy laws in ensuring fairness, affordability, legal protection, and sustainable housing administration.
1.3 Statement of Problems
Investigation revealed that the rising cost of housing rents has become a major concern for tenants, property owners, and policymakers in many urban and semi-urban areas. The continuous increase in rental charges has made decent housing less affordable for low and middle-income households, thereby reducing their standard of living and increasing the number of people living in overcrowded or substandard accommodation. Studies have shown that rapid urbanization, housing shortages, inflation, and increasing construction costs have contributed significantly to the persistent rise in rental prices (UN-Habitat, 2020).
Furthermore, the implementation and enforcement of tenancy laws remain inconsistent in many jurisdictions. Although tenancy laws are designed to protect the interests of both landlords and tenants, weak enforcement, inadequate public awareness, prolonged dispute resolution processes, and non-compliance with legal provisions have continued to generate conflicts between the parties. In many cases, tenants experience unlawful rent increases, forced evictions, or unfair treatment, while landlords encounter difficulties in recovering unpaid rents or regaining possession of their properties through lawful procedures (International Finance Corporation, 2021). It is against this backdrop that this study seeks to provide an overview of housing rents, multiple taxation, and tenancy laws.
1.4 Aim and Objectives of Study
The aim of this study is to provide an overview of housing rents, multiple taxation, and tenancy laws. The specific objectives of this research are to:
- Examine the causes of increasing housing rents.
- Assess the effects of multiple taxation on property owners and housing investment.
- Examine the role of tenancy laws in protecting landlords and tenants.
- Identify the challenges affecting the implementation of tenancy laws.
- Suggest measures for improving housing rent administration, taxation, and tenancy law enforcement.
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- What are the causes of increasing housing rents?
- What are the effects of multiple taxation on property owners and housing investment?
- What role do tenancy laws play in protecting landlords and tenants?
- What challenges affect the implementation of tenancy laws?
- What measures can improve housing rent administration, taxation, and tenancy law enforcement?
1.6 Research Hypotheses
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
Hypothesis One
- H0: There is no significant relationship between multiple taxation and housing investment.
- H1: There is a significant relationship between multiple taxation and housing investment.
Hypothesis Two
- H0: Tenancy laws have no significant influence on landlord-tenant relationships.
- H1: Tenancy laws have a significant influence on landlord-tenant relationships.
Hypothesis Three
- H0: Rising housing rents have no significant effect on housing affordability.
- H1: Rising housing rents have a significant effect on housing affordability.
1.7 Significance of Study
It is believed that at the completion of the study will provide government authorities with factual information for improving housing policies, taxation systems, and tenancy regulation. Also, the research will increase public understanding of the relationship between housing rents, multiple taxation, and tenancy laws.
Furthermore, the outcome of this research will serve as a reliable source of information for students and researchers undertaking related studies. It will also contribute to discussions on improving housing administration and dispute resolution.
Lastly, the result obtained from this research will support efforts aimed at promoting fair housing practices and legal compliance.
1.8 Scope of Study
This study focuses on an overview of housing rents, multiple taxation, and tenancy laws in Lagos State, Nigeria. The study examines the causes of rising housing rents, the effects of multiple taxation on property owners and investors, the role of tenancy laws, the challenges affecting their implementation, and possible measures for improving housing administration. The study uses the activities of the Lagos State Ministry of Housing as the institutional reference.
1.9 Limitations of the Study
The study was limited to housing rents, multiple taxation, and tenancy laws within Lagos State. The choice of the study area was based on accessibility to relevant information and available resources. The findings were limited to the selected location and were not extended to every state in Nigeria.
1.10 Definition of Terms
Housing:
Housing refers to the provision of shelter and the physical environment in which people live, including safety, affordability, and access to basic services. According to World Health Organization (2018), adequate housing promotes health, security, and human dignity.
Housing Rent:
Housing rent is the agreed amount paid periodically by a tenant to a landlord for occupying a residential or commercial property under a tenancy agreement (Organisation for Economic Co-operation and Development, 2021).
Multiple Taxation:
Multiple taxation refers to the imposition of similar or overlapping taxes, levies, or charges on the same property, income, or economic activity by different government authorities (World Bank, 2020).
Tenancy:
Tenancy is the legal arrangement that allows a person to occupy and use another person's property for an agreed period in exchange for rent (UN-Habitat, 2019).
Tenancy Laws:
Tenancy laws are legal rules that regulate the rights, responsibilities, and obligations of landlords and tenants, including rent payment, eviction procedures, maintenance responsibilities, and dispute resolution (International Finance Corporation, 2021).
Landlord:
A landlord is the owner of a property who grants another person the legal right to occupy the property in exchange for rent.
…