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Housing Delivery
Compiled by Market Decisions Southern Africa.
HOUSING DELIVERY IN SOUTH AFRICA
Since 1994, the democratic Government has delivered 3,7-million subsidised housing opportunities and services sites for the very poor, giving houses to approximately 12,5-million people (close to a quarter of the population). The following excerpts are taken from reports published by the Department of Human Settlements.
Fifty-six percent of all subsidies allocated have been to women-headed households, engendering housing in South Africa like in no other country. A home is an asset that offers an entry point to social, commercial and work Opportunities, thus offering a sense of being a full citizen. South Africa has now reached a point where, for the first time, blacks outnumber whites for home purchases in suburban areas.
This is an indication of progress in terms of the racial integration of our cities and towns, as well as in terms of the growth of the black middle class. Together, Government and the private sector have delivered 5 677 614 formal houses, increasing the number of people living in formal housing from 64% in 1996 to 77,7% in 2011. This represents a growth of 50% for the period. The formal housing market has increased 13-fold from R321-billion in 1994, reaching a collective value of about R4,036-trillion by 2014.
According to past Human Settlements minister, Mr Tokyo Sexwale: ‘These human settlements must be places where people can play, stay and pray. They should be green, landscaped communities, pleasant places where people live, learn and spend leisure time.’
Gauteng Department of Human Settlements state that “Despite Government efforts to provide housing for all, informal settlements in the country increased from 800 during Sexwale’s time as Gauteng premier to 2 500 in 2011. Moreover, the housing backlog had grown from 2,1-million to 2,3-million houses since he became Minister of Human Settlements due to a decrease in household size and an increase in household numbers. Mr Sexwale was very concerned about the situation after the global economic recession, saying that the ‘protests of our people are beginning to get more violent every day. It’s worrying. The police are shooting every day. Let’s work together and stem the tide.’ Despite these challenges, it was during Sexwale’s time that the number of housing units for the low-income bracket first reached 3-million in 2013. By 2014, the number was 3,7-million houses and serviced sites.
Population growth and urbanisation continued to put pressure on government to provide houses. It forced government to put together various measures to solve the problem. One of them was ensuring that national, provincial and municipal levels of government worked together and that they collaborated with sister Departments so that amenities such as schools and clinics could be provided in a co-ordinated manner, with housing being the conduit. This was the heart of BNG and still is the preferred method of providing human settlements. Kotsoane, known for his hands-on approach, threw himself admirably to the task. Relationships with the private sector and civil sector were strengthened. He enjoyed a good working relationship with Minister Sisulu. He left behind a solid legacy of a hands-on management and commitment to delivery.
But Adler is optimistic. He sees three key areas as the future focus of the HDA: ‘Land assembly, bulk infrastructure division and planning. If we get those right, I think that we will justify the promise that the first five years have shown.’
One of the lasting legacies of South Africa’s past is people, who earn very little, living far away from the towns and cities where they work. As a result, they have to spend most of their meagre earnings on transport, and never get a chance to sample amenities in their urban space. This greatly affects the quality of life of these people and their families, as most of the time has to be spent commuting to and from home. If they insist on being closer to work, they almost inevitably find themselves dwelling in informal settlements on the outskirts of the city, on the margins of socio-economic life. To help reduce the spread of informal settlements.
To obtain RDP housing is not simple. To get an RDP housing application approved, the applicant may not earn more than a certain amount (R3000 per month) which means that people who earn more than the maximum to qualify for an RDP house but less than the required amount to qualify for a home loan, will have a difficult time in getting financing to buy any sort of house.
An audit of the RDP housing situation in Gauteng has revealed mass irregularities, costing the province billions of Rand. From errant suppliers to evidence of collusion with officials, the housing MEC has vowed to root out the rot. One of the solutions is to rework the housing model that will include mixed developments. Sisulu said the municipality and provincial Human Settlements Department had erected 28,261 houses between 2011 and 2014.
It was a housing backlog that prompted the Gauteng Department of Human Settlements to create a mega housing development, one that caters not only for low-income earners.”
Considering this, we at market Decisions, looked at the three Census Periods from 1996 to 2011, in terms of Population and Housing to examine the relationship between the formal housing and informal housing and determine if there is growth or decline in housing development.
Province |
1996_Pop |
2001_Pop |
2011_Pop |
1996_Dwellings |
2001_Dwellings |
2011_Dwellings |
Eastern Cape |
6,271,373 |
6,436,619 |
6,562,054 |
1,362,724 |
1,535,292 |
1,687,385 |
Free State |
2,624,302 |
2,706,673 |
2,745,591 |
641,179 |
757,875 |
823,316 |
Gauteng |
7,297,083 |
8,837,013 |
12,272,263 |
2,047,475 |
2,836,584 |
3,909,022 |
KwaZulu-Natal |
8,353,054 |
9,425,824 |
10,267,300 |
1,712,035 |
2,201,275 |
2,539,429 |
Limpopo |
4,899,323 |
5,273,489 |
5,404,868 |
1,000,473 |
1,250,289 |
1,418,102 |
Mpumalanga |
2,786,116 |
3,122,892 |
4,039,939 |
617,555 |
783,307 |
1,075,488 |
North West |
3,341,371 |
3,669,407 |
3,509,953 |
736,050 |
978,756 |
1,062,015 |
Northern Cape |
829,161 |
822,730 |
1,145,861 |
198,618 |
220,364 |
301,405 |
Western Cape |
3,838,154 |
4,524,119 |
5,822,734 |
1,021,143 |
1,210,456 |
1,634,000 |
Totals |
40,239,937 |
44,818,766 |
51,770,563 |
9,337,252 |
11,774,198 |
14,450,162 |
The next step is to look at the type of dwelling units:
The first dwelling unit type is brick dwellings, on a separate stand, which could be regarded as a “formal structure”
Brick Dwellings |
1996 |
2001 |
2011 |
Eastern Cape |
496,156 |
624,218 |
880,683 |
Free State |
337,445 |
438,094 |
618,304 |
Gauteng |
1,004,824 |
1,424,660 |
2,307,843 |
KwaZulu-Natal |
602,646 |
915,303 |
1,518,700 |
Limpopo |
559,083 |
818,040 |
1,221,028 |
Mpumalanga |
345,885 |
473,573 |
847,708 |
North West |
443,481 |
621,323 |
738,782 |
Northern Cape |
132,466 |
158,606 |
229,818 |
Western Cape |
555,929 |
763,749 |
1,021,163 |
Total |
4,477,915 |
6,237,566 |
9,384,029 |
The next dwelling unit type is townhouses/clusters, also recognised as formal structures:
Townhouse/Cluster |
1996 |
2001 |
2011 |
Eastern Cape |
80,791 |
90,077 |
94,947 |
Free State |
29,085 |
23,050 |
27,928 |
Gauteng |
279,049 |
312,747 |
503,335 |
KwaZulu-Natal |
234,841 |
265,419 |
213,252 |
Limpopo |
16,737 |
16,181 |
17,708 |
Mpumalanga |
22,111 |
19,824 |
27,091 |
North West |
20,374 |
16,290 |
28,074 |
Northern Cape |
14,435 |
7,173 |
8,090 |
Western Cape |
219,354 |
156,260 |
159,400 |
Totals |
916,777 |
907,021 |
1,079,825 |
The final dwelling unit type refers to traditional structures, which could be formal, or even semi-formal:
Traditional Dwelling |
1996 |
2001 |
2011 |
Eastern Cape |
552,830 |
576,535 |
476,285 |
Free State |
64,738 |
52,710 |
19,543 |
Gauteng |
15,245 |
34,445 |
13,723 |
KwaZulu-Natal |
538,329 |
580,953 |
483,296 |
Limpopo |
315,440 |
232,471 |
63,974 |
Mpumalanga |
109,264 |
94,858 |
48,286 |
North West |
51,368 |
49,405 |
17,531 |
Northern Cape |
7,743 |
7,119 |
9,505 |
Western Cape |
9,329 |
25,655 |
7,775 |
Total |
1,664,286 |
1,654,151 |
1,139,918 |
A different dwelling unit type which still fall under formal structures refers to someone using a room on a shared property.
Room shared property |
1996 |
2001 |
2011 |
Eastern Cape |
19,157 |
23,081 |
35,694 |
Free State |
9,401 |
23,941 |
7,558 |
Gauteng |
38,953 |
184,884 |
90,815 |
KwaZulu-Natal |
35,321 |
114,103 |
39,194 |
Limpopo |
12,844 |
70,314 |
17,669 |
Mpumalanga |
11,706 |
49,821 |
12,252 |
North West |
11,345 |
48,901 |
13,483 |
Northern Cape |
3,629 |
13,113 |
6,666 |
Western Cape |
22,771 |
35,613 |
109,213 |
Total |
165,127 |
563,771 |
332,544 |
Now comes the interesting analysis: Informal Shacks in the backyard and the settlements themselves. If the figure in backyard shacks is increasing, it could be that the overcrowding of the past led to an explosion of new households, or more likely, the foreign inflow who are contributing to the household through rentals. Informal settlements have also sprouted despite the delivery of three million houses and one million serviced sites.
Informal Shacks in BY |
1996 |
2001 |
2011 |
Eastern Cape |
31,918 |
30,995 |
34,408 |
Free State |
50,931 |
44,075 |
48,633 |
Gauteng |
154,003 |
185,533 |
305,683 |
KwaZulu-Natal |
44,811 |
48,557 |
62,658 |
Limpopo |
15,833 |
21,092 |
32,278 |
Mpumalanga |
24,711 |
24,459 |
38,274 |
North West |
45,414 |
51,880 |
76,182 |
Northern Cape |
5,294 |
5,357 |
9,558 |
Western Cape |
33,437 |
46,754 |
105,282 |
Total |
406,352 |
458,702 |
712,956 |
Informal_Settlement |
1996 |
2001 |
2011 |
Eastern Cape |
115,423 |
135,222 |
95,983 |
Free State |
112,701 |
147,054 |
80,355 |
Gauteng |
315,502 |
448,107 |
434,075 |
KwaZulu-Natal |
141,582 |
176,995 |
148,889 |
Limpopo |
32,440 |
56,765 |
41,434 |
Mpumalanga |
69,971 |
92,804 |
78,532 |
North West |
114,688 |
155,501 |
148,794 |
Northern Cape |
22,487 |
20,426 |
30,047 |
Western Cape |
130,906 |
142,662 |
191,668 |
Total |
1,055,700 |
1,375,536 |
1,249,777 |
If it is assumed that on average South Africa has a household size of a figure as low as 3.9, then it follows that the country will require about 14,000 to 15,000 houses, if every household lives in a formal structure. There will be people who rent rather than own. Over the past few years, an additional 500,000 houses were provided, so this means that about 2 million houses would be the true shortfall figure for assisted housing.
Number of Low Cost Housing delivered per annum:
YEAR | # of Houses Built | Serviced Site |
Total Opportunities |
1994/95 |
60,820 |
|
60,820 |
1995/96 |
74,409 |
|
74,409 |
1996/97 |
129,193 |
|
129,193 |
1997/98 |
209,000 |
|
209,000 |
1998/99 |
235,635 |
12,756 |
248,391 |
1999/2000 |
161,572 |
|
161,572 |
2000/01 |
170,932 |
19,711 |
190,643 |
2001/02 |
143,281 |
|
143,281 |
2002/03 |
131,784 |
82,286 |
214,070 |
2003/04 |
150,773 |
42,842 |
193,615 |
2004/05 |
148,253 |
87,284 |
235,537 |
2005/06 |
134,023 |
109,666 |
243,689 |
2006/07 |
153,374 |
117,845 |
271,219 |
2007/08 |
146,465 |
82,298 |
228,763 |
2008/09 |
160,403 |
68,469 |
228,872 |
2009/10 |
161,854 |
64,362 |
226,216 |
2010/11 |
121,879 |
63,546 |
185,425 |
2011/12 |
120,610 |
58,587 |
179,197 |
2012/13 |
115,079 |
45,698 |
160,777 |
2013/14 |
105,936 |
48,193 |
154,129 |
2014/15 |
94,566 |
49,345 |
143,911 |
2015/2016 |
99,534 |
52411 |
151,945 |
|
|
|
|
|
3,029,375 |
1,005,299 |
4,034,674 |
We tried to call the Human Settlements Ministry but there is no response. The latest report cannot be downloaded, and the link takes one to “2017 gma co za APP 2018” which is Gautrain Management Agency.
To summarise on housing delivery, the following are key issues, which to be fair, the Human Settlements are very aware of, and are delivering on their mandate:
- The most important issues remain the Housing Registry Database. There are people who have been on the waiting list for twenty years, but somehow always miss the opportunity to own a house.
- There is no communication between Government, NGO’s and the Community. This must change.
- Many people living in low-income housing have access to employment. Some even rent rooms within the house, thus earning an income. No one has monitored this.
- There are households who live/have access to more than one house, albeit in separate extensions.
- There is an urgent need to educate recipients of the free units. They will have to contribute a small fee for maintenance and would need to pay for the services received. After all, many pay for Satellite TV.
- The Ministry should geographically code each unit and allocate it to an owner, who can then have the option to purchase it and use it as a collateral for future loans.
- The areas which have low-income housing falls short on community or recreational facilities, including education. This has led to a growth in drug use amongst the poorest of the poor.
- A huge opportunity has been lost in the training of residents in the housing developments to develop adequate skills in trade. These could have been two years of technical training and two years of apprenticeship. Many have six months training and this is evident in the inferior workmanship.
- There are dual household ownerships who wish to own a second home in the urban areas where affordability is a factor, but there is money for rental housing below R3,500.00 per month. This group makes up the largest residents of formal or RDP houses. Title deeds should be afforded to all RDP household owners.
THE WAY FORWARD, ACCORDING TO THE HUMAN SETTLEMENTS DEPARTMENT
Given the state’s constraints and the recent budget cuts on the Human Settlements Grants, delivering at scale will be a challenge for the state. As a result, the department will be strengthening the existing partnerships with private sector.
During the 2016/2017 financial year the department will focus on the following:
a) Scaling up the informal settlement-upgrading programme
b) Accelerating housing for Military Veterans
c) Transferring the title deeds and eradicating the backlog
d) Revision of the Finance Linked Individual Subsidy Programme
e) Strengthening partnerships with public and private sector to improve delivery
The human settlements trajectory proposes that, ‘by 2050 visible results from effectively coordinated spatial planning systems shall have transformed human settlements in South Africa into equitable and efficient spaces with citizens living near work with access to social facilities and necessary infrastructure’.
By 2030 we strive to achieve measurable progress towards breaking apartheid spatial patterns with significant advances made towards retrofitting existing settlements offering the majority of South Africans access to adequate housing, affordable services in better living environments, within a more equitable and functional residential property market.
To achieve this vision, the National Development Plan directed the following actions be taken:
- Respond systematically, to entrenched spatial patterns across all geographic scales that exacerbate social inequality and economic inefficiency
- Review housing policies to better realise constitutional housing rights, ensure that the delivery of housing is used to restructure towns and cities and strengthen the livelihood prospects of households
- Develop a more coherent and inclusive approach to land i.e. develop overarching principles for spatial development • Revise the regulations and incentives for housing and land use management
- Radically revise the housing finance regime
- Build capabilities for transforming human settlements
- Develop bolder measures to develop sustainable human settlements
The department is partnering with the Banking Association South Africa to intervene in the housing markets through the implementation of the housing programmes catering for various households. The department also has formed strategic partnership with the Development Bank of Southern Africa in the implementation of infrastructure projects that contribute to the achievement of the human settlements mandate.
Finally, the Monitoring, Evaluation and Impact Assessment (MEIA) Policy and Implementation Framework for the Human Settlements Sector, focuses to set the basis for monitoring and evaluation in the sector, establish principles to guide the sector, to monitor and evaluate National Human Settlements Policies, Programmes and Projects (NHSPPPs), and provide monitoring and evaluation Human Settlements practitioners with the tools to undertake their tasks. This enables the Human Settlements Sector to focus on priority Human Settlement Sector areas and ensure a culture of continuous improvement in Human Settlements Sector service delivery.