Rising Housing Costs: Ebonyi Proposes 2% Cap on Agents Commission

The Ebonyi State Government has proposed legislation to regulate house rents and landlord-tenant relationships while capping the fees charged by professional and non-professional house agents at two per cent of the total rental value.

The proposed rent regulation is contained in an executive bill approved by the state government and forwarded to the Ebonyi State House of Assembly for consideration.

The state government also sent a separate bill seeking to regulate the sale and handling of metal and electrical scrap in the state, as part of efforts to curb the vandalism of public infrastructure and address related public safety concerns.

The two bills were approved by the Ebonyi State Executive Council, according to the Commissioner for Information and Orientation, Ikeuwa Omebeh.

Omebeh disclosed this on Tuesday while briefing journalists in Abakaliki on the outcome of the state Executive Council meeting held on Monday.

Explaining the rationale behind the proposed housing legislation, the commissioner said the government was responding to the rising cost of accommodation, particularly in Abakaliki, the state capital.

According to him, the proposed law is designed to establish clearer rules governing relationships between landlords and tenants while also regulating the charges imposed by house agents operating across the state.

A key provision of the proposed bill is the restriction of agency fees to not more than two per cent of the total rental value.

The government said the measure is intended to prevent residents from being subjected to arbitrary charges by agents and reduce the financial burden associated with securing accommodation.

Omebeh said the proposed regulation would apply to both registered professional agents and non-professional house agents.

The initiative comes against the backdrop of growing concerns over the cost of housing and the additional financial demands often placed on prospective tenants by landlords and agents.

Under the proposed framework, the government hopes to promote greater transparency in the housing market while ensuring that residents are better protected from excessive charges.

However, the proposed 2% cap is not yet an enforceable law. The bill must first be considered and passed by the state House of Assembly and subsequently assented to before it can become law.

The Executive Council also approved another bill aimed at regulating the scrap metal industry in Ebonyi State.

Omebeh said the proposed legislation, titled “A Bill for a Law to Regulate the Sale of Metal and Electrical Scraps in Ebonyi State and Other Related Matters,” is intended to address the growing threat posed by the indiscriminate acquisition and disposal of metal and electrical materials.

According to the commissioner, the proposed law would establish regulations covering the acquisition, sale, possession, transportation and disposal of metal and electrical scrap across the state.

The government believes tighter regulation of the sector could help prevent the theft and vandalism of public infrastructure, including valuable metal components from government facilities and other public assets.

The legislation is also expected to address concerns over environmental degradation associated with the improper handling and disposal of scrap materials.

Beyond protecting public infrastructure, the government said the proposed regulations would contribute to improved public safety by ensuring that the movement and trading of scrap materials are properly monitored.

Omebeh confirmed that both executive bills had been formally transmitted to the Ebonyi State House of Assembly following their approval by the Executive Council.

The lawmakers are expected to scrutinise the proposed legislation and determine whether to pass them into law.

If enacted, the rent regulation bill could significantly alter the relationship between landlords, tenants and house agents in Ebonyi, particularly in Abakaliki, where the government says rising housing costs have increased the financial pressure on residents.

The scrap metal legislation, meanwhile, is expected to provide a legal framework for monitoring the sector and strengthening efforts to protect public infrastructure from vandalism.

The two initiatives form part of the Ebonyi State Government's broader effort to respond to economic pressures on residents while addressing security, environmental and infrastructure-related challenges across the state.