Review of rent to buy with a particular focus on the Institutional Housing Subsidy Programme

There is a broad consensus in government that new solutions must be found to tackle the
growing housing crisis in the country. In this context, the Western Cape Government
developed a Human Settlements Framework (“Living Cape”), which places new emphasis on
establishing public-private partnerships, shifting the government’s role from provider to
facilitator, and increasing contributions from individuals. One potential avenue to increase
homeownership among poor households through public-private partnerships is the
Institutional Housing Subsidy Programme (IHSP), and rent to buy schemes more generally.
The aim of this report is to examine the viability of the Institutional Housing Subsidy
Programme (IHSP), and rent to buy schemes, to contribute to accelerating the delivery of
affordable housing in the Western Cape Province.

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