feature
Addressing the growing
“gap” housing market
Post democracy, government
reviewed the apartheid housing policy
framework in its entirety and adopted
what was deemed international
best practice. The two fundamental
documents, which underpin the
mandate of the Department of
Human Settlements, are the New
Housing Policy and Strategy for
South Africa: White Paper, 1994
and the Comprehensive Plan for the
Development of Sustainable Human
Settlements, 2004.
T
he housing vision is to establish viable, socially and
economically integrated communities, which have
convenient access to economic opportunities, as
well as health, educational and social amenities,
in which all South Africans will, on a progressive
basis, have access to:
• Permanent structures;
• Secure tenure;
• Protection from the elements;
• Privacy; and
• Potable water, adequate sanitary facilities and energy supply.
16
BANKER SA
Over the past 19 years, government’s success in addressing the
housing needs of the most vulnerable is unparalleled globally.
Noteworthy achievements include:
• About 3.85 million capital subsidies have been approved, with
approximately 3.4 million vulnerable families having received
a subsidy (free) home (14.2% of the total number of households
in South Africa).
• 85% of households have access to energy.
• 91% of households have access to piped water.
• 95% of households have access to waterborne sanitation.
• 93.6% of households have access to either landlines or
cellular phones.
Backlogs
Despite these remarkable achievements, the housing backlog has
increased over the past 19 years. There are still about 2 million
households in urban areas alone that live in sub-standard housing
conditions. Informal settlements have increased from 300 in
1994 to approximately 3 000 in 2013. Estimates for the number of
households who earn too much to qualify for a free subsidy home
but too little to afford an entry-level bonded home (the gap market)
total approximately 3.5 million households or 24% of South
Africa’s household population (estimated gap housing backlog
600 000 households). Population growth, household migration
from rural to urban areas, coupled with smaller family sizes
primarily accounts for government being unable to reduce
housing backlogs. Unless there is a policy shift that creates
a more appropriate environment for a substantial increase in
housing delivery, we can expect housing backlogs to increase,
especially as urbanisation is expected to continue to increase.
Edition 7
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