Housing Finance in South Africa
Overview
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Despite the South African government’s efforts to deliver 300,000 houses over the past five years, the country still faces a significant housing backlog, with over 2.4 million households registered on the National Housing Needs Register in 2023. Urbanisation rates, which stood at 1.56% in 2022, are high, putting a strain on basic services and leading to the growth of informal settlements. Densification, especially in Gauteng, the country’s economic hub, has become a focal point due to land constraints. The demand for affordable housing has surged amid high unemployment, a weak economy, and a rising cost of living, prompting increased reliance on the private sector to address the shortfall in affordable housing.
South Africa’s urbanisation rate is expected to rise to 71% by 2030, with over two-thirds of the population already residing in urban areas. While there have been improvements in access to water, sanitation, and electricity services, the percentage of households with access to solid waste removal has decreased to 62.6% in 2022. Despite economic challenges, the GDP expanded by 0.4% in the first quarter of 2023, driven by positive contributions from manufacturing and finance, real estate, and business services. However, the economy has been affected by electricity shortages, contributing to a weakened currency and hampering domestic economic activity.
The National Department of Human Settlements faces fiscal constraints, with a 1.54% decline in its real budget for 2023/24 compared to the previous year. Nonetheless, the state housing subsidy saw a substantial increase of 29.7% for the same financial year. Given these challenges, the focus is shifting towards serviced sites and upgrading informal settlements, and the emergency housing programme has been centralised at the national level. The economic struggles are further exacerbated by extensive electricity cuts, logistical constraints, weaker global activity, lower commodity prices, higher-than-expected inflation, and increased interest rates, with the prime lending rate reaching 11.75% in May 2023. Despite positive indicators in GDP growth and property price inflation, the overall economic outlook remains influenced by these challenges.
Find out more information on the housing finance sector of South Africa, including key stakeholders, important policies, and housing affordability.
- Overview
- Access to finance
- Affordability
- Housing Supply
- Property Markets
- Policy and Legislation
- Opportunities
- Availability of Data on Housing Finance
- Examples of Innovation
- Websites
Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2023 edition, which has up-to-date profiles for 55 African countries.Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2023 edition, which has up-to-date profiles for 55 African countries and territories
Download yearbook
South Africa
Overview
Despite the government having delivered 300 000 houses in the past five years,[1] South Africa’s housing backlog remains a massive challenge for the country, with over 2.4 million households registered on the National Housing Needs Register in 2023.[2] High rates of urbanisation put pressure on basic services and lead to increases in informal settlements. Given land constraints, densification—through inner city rental, higher-density ownership typologies, and informal small-scale rental—is a growing area of focus. High unemployment, a weak economy, and rising cost of living has also contributed to an increased demand for affordable housing.[3] Almost half of the housing backlog is registered in Gauteng, the smallest province in size, but largest in population numbers and the economic centre of the country.[4] Despite its massive investment in housing delivery, the public sector has struggled to meet the housing demand, putting onus on the private sector to deliver more affordable stock for ownership and rental.
According to the most recent General Household Survey, South Africa has a population of approximately 61.4 million people, living in 18.5 million households. The urbanisation rate was 1.56% in 2022.[5] Urbanisation in South Africa is high – over two thirds of South Africans already live in urban areas, with this expected to rise to 71% by 2030. In terms of access to services, increases were seen in access to an improved source of water (to 88.5%), improved sanitation (83.2%) and electricity (89.6%). However, there has been a decrease in households with access to solid waste removal weekly or less often, to 62.6% in 2022 (the lowest figure in over a decade).[6]
South Africa’s Gross Domestic Product (GDP) expanded by 0.4% in the first quarter of 2023 to R1 152 billion (US$61.1 billion).[7] This is after contracting by over 1% in the fourth quarter of 2022. Manufacturing and finance, real estate and business services were the largest positive contributors to this growth.[8] Real GDP growth in March 2023 was measured at 1.4%, up from -4.9% in December 2022.[9] Annual national residential property price inflation was 3.6% in March 2023, down from 3.8% in February 2023,[10] while annual consumer inflation also decreased, to 4.7% in July 2023, the lowest reading in 20 months.[11] The local currency has been characterised by weakness for much of 2023, falling from approximately R17 to the US dollar in January 2023 to R19.52 in May of the same year.
The weak state of the economy is also due to the pressure put on businesses and households by extensive electricity cuts (load-shedding), as the country struggles with its current energy crisis.[12] A trading update from Nedbank, one of the country’s largest banks, notes that domestic economic activity has been hampered by severe electricity shortages, logistical constraints, weaker global activity and lower international commodity prices, higher-than-expected inflation and high-interest rates.[13] The prime lending rate has seen three increases in 2023, to 10.75% in January 2023, 11.25% in March 2023 and 11.75% in May 2023.[14] It is expected to remain flat for the rest of 2023, with a slow decline in 2024.
The total budget of the National Department of Human Settlements (NDHS) rose to R34.942 billion in 2023/24; however, this constituted a 1.54% decline in real terms compared to 2022/23. At the same time, the quantum of the state housing subsidy was increased substantially by 29.7% for the 2023/24 financial year.[15] Given severe fiscal constraints faced by the government currently, the NDHS is shifting focus towards serviced sites and upgrading of informal settlements.[16] In April 2023/24, control of the emergency housing programme was removed from local and provincial government and centralised with the national department.[17]
[1] Parliamentary Monitoring Group (2022). Department of Human Settlements 2022/23 Annual Performance Plan; with Minister. https://pmg.org.za/committee-meeting/34779/ (Accessed 28 August 2023).
[2] Parliamentary Monitoring Group (2023). Question NW535 to the Minister of Human Settlements. 20 March 2023.
[3] Habitat for Humanity (undated). Country profile: South Africa.
[4] See footnote 2.
[5] Trading Economics (2023). South Africa – Urban Population (% of Total).
[6] Statistics South Africa (2023). General Household Survey: 2022. Statistical release: P0318. Pg. iiix.
[7] Statistics South Africa (2023). South African economy expands by 0.4%. 6 June 2023.
[8] Ibid.
[9] SA Reserve Bank (undated). Key statistics. https://www.resbank.co.za/en/home/what-we-do/statistics/key-statistics (Accessed 31 August 2023).
[10] Statistics South Africa (2023). Residential Property Price Index. https://www.statssa.gov.za/publications/D0160/D0160March2023.pdf (Accessed 21 August 2023). Pg. 3.
[11] Statistics South Africa (2023). Consumer inflation lowest in two years. 23 August 2023.
[12] Smit, S. (18 May 2023). Self-inflicted pain makes SA rand a sore thumb.
[13] Fraser, L. (2 June 2023). 2023 has been worse for South Africa than expected: economists.
[14] South African Reserve Bank (2023). Dates of change in the prime lending rate. https://www.resbank.co.za/en/home/what-we-do/statistics/key-statistics (Accessed 28 August 2023).
[15] Kubayi, M. (16 May 2023). Minister Mmamoloko Kubayi: Human Settlements Dept Budget Vote 2023/24, NCOP.
[16] National Department of Human Settlements (2022). Annual Report 2021 – 2022. Pg. 8.
[17] National Department of Human Settlements (2023). Annual Performance Plan 2023/24. Pg 3.
Access to finance
The South African banking system is the largest in Africa, with the country’s top five financial institutions ranking amongst the ten largest African banks.[1] There are 15 mortgage providers in South Africa. Standard Bank, ABSA and First National Bank are the largest residential mortgage lenders in the country.[2]
In terms of access to finance, four big banks dominate the market in terms of total assets and market capitalisation. In 2018/19, three new bank licenses were granted, the first new banking licenses in almost a decade. The Financial Sector Conduct Authority (FSCA) notes that small banks such as cooperative banks and mutual banks have not effectively penetrated the market.[3]
South Africa’s financial inclusion levels are high at over 90%. Various finance products are offered for low-income earners, from a range of institutions.[4] In addition, there are over 2 000 microfinance providers in the country[5] with the value of microfinance loans being estimated at R27.75 billion (US$1.47 billion) in 2019.[6] Microfinance loans vary from consumer loans to house improvement loans. There are also new microlenders offering housing microfinance as well as private housing credit providers operating from major building supplies retail stores.[7]
Despite high levels overall, South Africa still experiences a gender gap in financial inclusion.[8] While not necessarily representative of the entire home loan market, BetterBond noted that in 2022, women buyers accounted for almost 43% of successful home loan applications. Yet there is also evidence of increasing market activity by women. In the sectional title market, these figures are higher, with for example, 62% of sectional title owners in Gqeberha being women.[9]
In 2022, Lightstone released data noting that women accounted for, individually or in partnership, 57% (3 896 595) of the total volume of properties in the market (6 868 778), equal to 54% of the total value of residential properties registered at the Deeds Office. The age profile of women buyers is trending younger – for example, under 35-year-old buyers have increased from 25% in 2018 to 34% in 2021.[10]
In 2023, there were a total of 1.6 million residential mortgages outstanding, with interest rates ranging from 9.5% to 12.75%.[11] The value of mortgages granted has decreased by 22.19%, from Q1 2022 to Q2 2023, while the number of mortgages granted dropped 22.43% over the same period.[12]
[1] Statista (2023). Banking industry in South Africa – statistics & facts. https://www.statista.com/topics/10261/banking-industry-in-south-africa/#topicOverview (Accessed 21 August 2023).
[2] Statista (2022). Leading mortgage lenders South Africa 2020, by number of loans.
[3] Financial Sector Conduct Authority. (undated). Financial Inclusion Strategy. www.fsca.co.za/Documents/FSCA%20Financial%20Inclusion%20Strategy.pdf. (Accessed 31 August 2023). Pg 10.
[4] Research and Markets (2 Nov 2022). South Africa Banking Industry Trends Report 2022: Mobile and Digital Banking are Key Drivers of Financial Inclusion in South Africa.
[5] National Credit Regulator (2023). https://www.ncr.org.za/ (Accessed 7 August 2023).
[6] Birguid (2019). South African Micro Finance Executive Summary. Pg. 4.
[7] South African Housing and Infrastructure Fund (2021). The State of Housing Microfinance. Pg. 5.
[8] Ojo, T. (2021). South Africa needs to up its game when it comes to financial inclusion for women.
[9] BizCommunity (3 August 2022). Women increasingly take the lead in SA housing market.
[10] Lightstone (August 2022). Women own or co-own more than half of SA’s homes and are buying a third of the cars being sold.
[11] Private Property (2023). Home loan interest rates 101. https://www.privateproperty.co.za/advice/property/articles/home-loan-interest-rates-101/6643 (Accessed 15 August 2023).
[12] National Credit Regulator (2023). Consumer Credit Market Report – First Quarter March 2023. Pg. 9.
Affordability
Unemployment in South Africa in the first quarter of 2023 was 32.9%, with a slight decrease in the second quarter of the year to 32.6%.[1] This however remains among the highest in the world. In 2022, approximately 18.2 million people lived in extreme poverty – an increase of 123 000 people from 2021.[2] The country’s Gini coefficient measured 0.63 in 2022, arguably the highest level of inequality in the world.[3] Government social grants are the main source of income for 23.5% of households nationally, with COVID-19 having contributed to an increase in the percentage receiving a social grant from 12.8% in 2003, to 30.9% in 2019, to 37.0% in 2021.[4]
In the current term, the NDHS is planning to review and update its social housing policy in order to increase the supply of rental and social housing stock.[5] The revised income bands for social housing eligibility are households earning a monthly income between R1 850 and R22 000 (US$98 and US$1 168).[6]
There are a number of housing subsidies available from national government. The Finance Linked Individual Subsidy Programme (FLISP)—recently rebranded First Home Finance—is a subsidy that aims to provide low to middle income households with financial support to purchase or build a house. It is aimed at the gap market i.e., for those who do not qualify for a fully subsidised house but also cannot access a mortgage loan from the banks (income levels between R3 501 (US$186) and R22 000 (US$1 168) per month).[7] In 2021/22 over 3 200 FLISP subsidies were disbursed to a value of R173 million (US$9.1 million). The NHFC is also in the process of merging with the RHLF to form the Human Settlements Development Bank (HSDB).[8] There has been some delay in this process however, and the Human Settlements Development Bank Bill, which will allow for the Bank’s enactment, has yet to be tabled.
[1] Statistics South Africa (2023). Quarterly Labour Force Survey – Quarter 2: 2023. Pg. 1.
[2] Cowling, N. (2023). Number of people living in extreme poverty in South Africa 2016-2025.
[3] Meyer, D. (2023). Inflation targeting – probing levels of success of monetary policy in South Africa. 18 July 2023. Daily Maverick.
[4] Statistics South Africa (2023). General Household Survey: 2022. Statistical release: P0318. Pg. xii.
[5] South African Government (undated). Human Settlements. https://www.gov.za/about-sa/humansettlements (Accessed 31 August 2023).
[6] Ibid.
[7] Department of Human Settlements (2023). Finance Linked Individual Subsidy Programme. https://www.dhs.gov.za/content/finance-linked-individual-subsidy-projects# (Accessed 28 August 2023).
[8] National Housing Finance Corporation (2022). 2021/22 Integrated Annual Report. Pg. 41.
Housing Supply
In 2022, 83.2% of South African households lived in formal dwellings, 12.3% lived in informal dwellings and 4.3% lived in traditional dwellings. Within metropolitan areas however, almost 16% of households lived in informal dwellings, many in backyard dwellings or informal settlements.[1] South Africa has approximately 3 400 informal settlements nationwide.[2] The national DHS has a programme focused on upgrading these, which saw 1 168 informal settlements upgraded in the 2021/22 financial year.[3]
Data suggests that construction activity has slowed in 2023. Statistics South Africa (Stats SA) notes that in the first half of 2023 the nominal value of residential buildings completed decreased by 8.6% when compared to the same period in 2022. In addition, decreases were reported for alterations to homes. Similarly, the value of building plans passed by municipalities has decreased between 2022 and 2023.[4]
The NDHS has a number of housing delivery programmes in place, including the Integrated Residential Development Programme (IRDP), Informal Settlements Upgrading Programme and the Affordable Rental Housing Programme. The upgrading support programme focuses on improving living conditions of households living in informal settlements through the provision of water and sanitation and adequate access to social services. A significant element of this programme is that of active community participation. In the current term of office (2019 to 2024), the NDHS aims to upgrade 180 000 stands to have access to municipal services.[5] Other key government interventions include rapid land release programmes and the Government Employees Housing Scheme (GEHS).[6]
Regarding social housing, in 2022 the NHFC started work on an off-balance sheet financing instrument that will leverage private sector investment off the social housing grant. Through this, approximately 8 000 to 10 000 new social housing units are planned for delivery in the next eight years.[7] The NDHS has also partnered with the South African Housing and Infrastructure Fund (SAHIF) to accelerate delivery of large social housing projects.[8]
In terms of the construction side of housing supply, the NHBRC, the regulatory body of the home building industry, ensures that builders comply with the prescribed building industry standards. In the 2021/22 financial year, the number of homebuilders registered increased, providing evidence that the residential market has remained resilient amid slow economic growth and increasing interest rates.[9]
In 1999, the South African Women in Construction (SAWIC) initiative was founded to empower women to gain access to contracts, training, finance, and networks in the construction industry. Members include women-owned entities in construction, property development, property management, suppliers, manufacturers and built environment professionals (companies, co-operatives, and corporates).[10] In 2018, the Construction Industry Development Board (CIDB) conducted a survey which found that only 11% of the professionals in the sector were women. In addition, approximately a quarter of the largest constructions firms were at least 51% women-owned, while 34% were black-owned.[11]
Property finance companies such as TUHF21 provide finance for entrepreneurs developing affordable rental in the inner city. Founded through TUHF, the uMaStandi Fund is its first funding vehicle intended to finance rental properties in townships. With R125 million (US$6.6 million) from new investors in the first year of operation, the Fund supports rental property development in township areas.[12]
[1] Statistics South Africa (2023). General Household Survey: 2022. Statistical release: P0318. Pg. 30.
[2] Department of Human Settlements (2023). Annual Performance Plan 2023/24. Pg. 3.
[3] Department of Human Settlements (2022). Annual Report 2021 – 2022. Pg. 11.
[4] Statistics South Africa (2023). Selected building statistics of the private sector as reported by local government institutions (Preliminary). Statistical release: P5041.1. Pg. 3.
[5] South African Government (undated). Human Settlements. https://www.gov.za/about-sa/humansettlements (Accessed 31 August 2023).
[6] Department of Human Settlements (2022). Annual Report 2021 – 2022. Pg. 9.
[7] National Housing Finance Corporation (2022). 2021/22 Integrated Annual Report. Pg. 4.
[8] See footnote 43.
[9] NHBRC (2022). 2021/22 Annual Report. Pg. 8.
[10] South African Women in Construction (undated). www.sawicgauteng.org.za (Accessed 31 August 2023).
[11] Africa CEO Forum (2022). Mbokodo: putting women first in South African construction.
[12] TUHF (9 May 2023). Township Development Facility, Umastandi Fund, attracts R125M. https://www.tuhf.co.za/township-development-facility-umastandi-fund-attracts-r125m/ (Accessed 31 August 2023).
Property Markets
The 2022 General Household Survey found that almost 57% of households own their own home and have fully paid this off, while a further 7.6% own their home but had not yet paid it off and 22.5% of households rented their property.[1]
The percentage of households that have received some form of government housing subsidy increased significantly from 5.6% in 2002 to 13.0% in 2022. A higher percentage of female-headed households (15.5%) than male-headed household (11.0%) received subsidies. This is in line with government policies that give preference to households headed by individuals from vulnerable groups, including females, and people with disabilities.[2]
The residential property market is the largest component of the South African property market, with approximately seven million residential properties in 2023, worth R6.6 trillion (US$350 billion). Of these, freehold properties make up over 80% of the total number of properties, however represent 65% of total value. In comparison, houses in residential estates made up 7% of the total number of residential properties but represent 20% of the total value of properties.[3]
The national Deeds Office is an entity of the Department of Rural Development and Land Reform (DRDLR) and is mandated to register title deeds and documents, manage, and maintain the country’s land register, provide information related to registration and archive the records. There are a further 11 deeds registries located in nine provinces overseen by the Office of the Chief Registrar of Deeds (OCRD). In 2021, 301 591 transfers took place.[4] Deeds Office backlogs and service disruptions that affected property transfers during the pandemic are generally resolved. However, on average, a property transfer in South Africa takes three months. Steps include new bond application and approval, cancellation of existing bond, municipal clearance, payment of transfer duty to the South African Revenue Service (SARS), and finally, the lodging of documents at the Deeds Office.[5]
The issuing of title deeds is another key government programme to address skewed land ownership patterns. To date, over 1.4 million title deeds have been issued to households residing in government-subsidised housing. In its 2023/24 Annual Performance Plan, the NDHS provides a gender breakdown of this, noting that 54% of title deeds have been issued to women.[6] However, there remains a backlog in the processing of title deeds – in the 2023 State of the Nation address, the backlog was stated at over one million houses amounting to an estimated R242 billion.[7]
In 2021, Stats SA started working through the development of a Residential Property Price Index (RPPI) in partnership with the South African Reserve Bank (SARB) and the International Monetary Fund (IMF). The RPPI aims to measure the changes in the price of residential properties such as houses, townhouses and flats purchased by households.[8]
[1] Statistics South Africa (2023). General Household Survey: 2022. Statistical release: P0318. Pg. 31.
[2] Ibid. Pg. 32.
[3] Investec Focus (19 April 2023). An overview of the property market – where the value lies.
https://www.investec.com/en_za/focus/economy/an-overview-of-the-property-market—where-the-value-lies.html (Accessed 4 October 2023).
[4] Deeds Office (2023). Interesting Statistics. https://www.deeds.gov.za/statistics.php (Accessed 28 August 2023).
[5] Lamna (2023). How Long Does a Property Transfer Take in South Africa, 2023?
[6] Department of Human Settlements (2023). Annual Performance Plan 2023/24. Pg. 20.
[7] Ramaphosa, C. (9 February 2023). State of the Nation address.
[8] Statistics South Africa (2023). Residential Property Price Index. www.statssa.gov.za/publications/D0160/D0160October2022.pdf (Accessed 30 August 2023). Pg. 5.
Policy and Legislation
Section 26 of the country’s Constitution states that everyone has the right to access to adequate housing, while the Housing Act 107 of 1997 sets out the principles, institutional arrangements and framework used in the development of sustainable human settlements. To address South Africa’s high rate of urbanisation, the Integrated Urban Development Framework (IUDF) was adopted in 2016, supported by the National Development Plan (NDP). The latter is a long-term policy document setting out the country’s vision to 2030. Chapter 8 of the NDP focuses on human settlements and the transformation thereof, to eliminate apartheid geography and create settlements of mixed use. [1]
In 2022, the Property Practitioners Regulatory Authority Act 22 of 2019, which established the Property Practitioners Regulatory Authority (PPRA) and replaced the Estate Agency Affairs Board, came into operation. This Act regulates the affairs of all property practitioners and has a mandate to transform the sector and to provide consumer protection, among others.[2] Other relevant sectoral legislation include, among others, the Home Loan and Mortgage Disclosure Act 63 of 2000, the Housing Code (2009), the Sectional Title Schemes Management Act 8 of 2011, the Consumer Protection Measures Act 95 of 1998, the Rental Amendment Act 35 of 2014, and the Community Schemes Ombudsman Service Act 9 of 2011.
The NDHS notes in its 2022 Annual Report that it was in the process of reviewing all disaster and emergency-related policies. This was as a result of climate change challenges and a number of disasters experienced across South Africa in 2021/22, including flooding and fires.[3] The NDHS also remodelled the FLISP in 2022, to address the gap housing market, where potential property owners’ income may exceed the limit for a full subsidy house but be too low to receive a mortgage loan. The remodelled FLISP now includes a range of non-mortgage product offerings and alternative tenure options.[4]
A Housing Consumer Protection Bill was approved by Cabinet in 2022 for tabling in Parliament. This Bill, when passed into law, will repeal the Housing Consumers Protection Measures Act 95 of 1998 in its entirety. Proposed amendments include expanding the protection afforded to housing consumers (for example, the provision of the warranty to cover home repairs, renovations, alternations, and additions to an existing home). The main purpose of the Bill is to strengthen the weak position of the housing consumer against that of the developer or home builder.[5]
Finally, the NDHS notes that it intends to embark on stakeholder consultation in 2023 to inform a White Paper on Housing in Human Settlements.[6]
[1] SA Government (2012). National Development Plan. Pg. 258.
[2] Department of Human Settlements (2022). Annual Report 2021 – 2022. Pg. 12.
[3] Ibid. 8.
[4] Ibid. Pg. 13.
[5] NHBRC (2022). 2021/22 Annual Report. Pg. 10.
[6] Department of Human Settlements (2023). Annual Performance Plan for 2023/24. Pg. 17.
Opportunities
2023 has brought increased attention in the sector on small scale affordable rent, the provision of serviced sites, and support to micro developers in township areas. Recent years have also seen an increased focus on the provision of social housing, through leveraging of private sector investment. Inclusionary housing policies at provincial and local level of government (including most metropolitan municipalities) intend to ensure the provision of affordable housing in larger housing developments.
The anticipated development of a new Human Settlements White Paper is intended to overhaul the housing subsidy scheme and focus on enabling public-private partnerships. Some of the country’s larger cities have started preparing new policies and programmes linked to this, to enable the development of small-scale affordable rental accommodation. This is in support of the general urban densification focus, a key feature of the second phase of the National Infrastructure Plan gazetted for public comment in late 2022.[1]
Other opportunities exist around housing finance. The SAHIF notes that alternative funding models that allow for phased loan repayment could be appropriate given the need for alternative tenures to be part of the financing considerations for housing finance. Alternative models include the rent-to-own model and the instalment sale agreement model.[2]
Finally, tech-based housing financing models offer great opportunities for application; for example, digital models are being utilised in various jurisdictions in the Indian and Indonesian market and which Africa could potentially adopt for its low-income earning households. This can include peer-to-peer and Fintech consumer finance and lending (e.g. Square Yard and Gradana), digital banks (e.g. Digibank), and technology in housing finance operation (e.g. Aviom India Housing Finance).[3]
[1] Meyer, SJ. (13 February 2023). Affordable rental market White Paper. https://www.privateproperty.co.za/advice/news/articles/affordable-rental-market-white-paper/8994 (Accessed 4 October 2023).
[2] South African Housing and Infrastructure Fund (2021). The State of Housing Microfinance. Pg. 4.
[3] Ibid.
Availability of Data on Housing Finance
Data on housing finance is primarily available from Stats SA, the National Credit Regulator (NCR), the NHFC, NDHS and the SARB. Stats SA publishes a monthly Residential Property Price Index (RPPI) as well as regular statistics on population figures, households, building statistics etc. The Consumer Credit Market Report is published quarterly by the NCR and details mortgage information, credit transactions and developmental credit. The NDHS produces annual reports and performance plans which provide information on government spending on human settlements, planning and targets for delivery, subsidy programmes and affordable housing.
The Deeds Office provides some “Interesting Statistics” however this appears to be determined by the Office and users are not able to search for specific data. It is also fairly outdated, with the statistics on the home page of the website being from 2019.
Private sector data providers include companies such as Lightstone Property, Knight Frank and First National Bank.
There is generally limited disaggregation of data by gender in South Africa. In terms of climate issues, the NDHS publishes narrative reports on its approach to disaster management and climate change, as regards housing delivery.
Examples of Innovation
Empower Shack provides alternative affordable housing units for informal settlement dwellers. These double-storey homes range from 42.5 to 80 square metres and were designed and built by the Khayelitsha-based non-profit organisation, Ikhayalami, in collaboration with design studio Urban Think Tank (UTT) based at the Swiss Institute of Technology in Zurich.
The project aims to upgrade informal settlements through four components: a two-storey housing prototype, a participatory spatial planning process, integrated urban systems and economic solutions. Livelihood programmes include construction and upgrade facilitation apprenticeships, and community urban management. The intention of the two-storey model is to create more space for people live and work from their homes. It allows for fire break spaces to give emergency services easy access. Houses are arranged around a sanitation core providing water and toilets, and additional levels can be added if needed.
To date, 73 new homes have been built on land in Site C, Khayelitsha. Houses are built from brick, wood, and zinc sheets, and are fireproof and water-resistant. Five different model sizes were available for families to choose from, with each house fitted with a water management device and prepaid electricity meter.
Swiss Re, a reinsurance firm based in Switzerland provides 90% of the funding. The remaining 10% is financed by the families, primarily through microfinance loans. Monthly instalments range from R300 to R1 300 (US$16 to US$69). The total cost to build homes ranged from R230 000 (US$12206) for the smallest model to R480 000 (US$25474) for the largest model.
Websites
First National Bank: www.fnb.co.za
Housing Development Agency: www.thehda.co.za
National Credit Regulator: www.ncr.org.za
National Department of Human Settlements: www.dhs.gov.za
National Home Builders Registration Council: https://www.nhbrc.org.za/
National Housing Finance Corporation: www.nhfc.co.za
National Association of Social Housing Organisations: https://www.nasho.org.za/
Parliamentary Monitoring Group: https://pmg.org.za/
Social Housing Regulatory Authority: www.shra.org.za
South African Reserve Bank: www.resbank.co.za
Statistics South Africa: www.statssa.gov.za
TUHF: www.tuhf.co.za
