Gauteng government to deal with challenges faced by the affordable rental sector
The Gauteng Provincial Government (GPG) is to look at different ways of dealing with the shortage of affordable rental accommodation in the province through encouraging investment in this sector.
Speaking at the Affordable Housing Indaba, Head of Department for the Gauteng Department of Human Settlements Ms, Daphney Ngoasheng, said that affordable rental accommodation remained a key challenge in the province.
“There are very little new rental properties being developed for households who cannot afford to pay more than R2 500 per month for their rental housing needs, as such we need to invigorate this market to increase its responsiveness to this need,” she said.
Ngoasheng said social housing was targeting people who earn between R3 501 and R7 500 so the rentals have to remain affordable. At the same time that must be done in a manner that these social housing institutions remain profitable and operational whilst responding to the housing needs of this target market.
Ngoasheng said that government was looking at a number of funding models to encourage public private partnerships which included incentives for rates and taxes, partnering with those who own land or are willing to put bulk infrastructure and various other interventions.
Ngoasheng said that one of the pillars of the province was to transform the spatial pattern and planning in and around cities and suburbs whilst also transforming the rental space.
Joshua Ngonyama, MMC for Human Settlements in the City of Tshwane, said the City was dealing with a challenge of affordable housing for the poor which stands at around 400 000 households who are staying in various informal settlements around the City. He said the City will provide serviced stands and later houses as part of formalisation relief programme.
Ngonyama said that the second problem was that well located land was not available for poor people and the municipality had taken a decision to integrate the rich and poor in order to correct the historical imbalances.
Boni Muvevi, CEO of GPF, said GPF is a public sector affordable housing delivery vehicle, that mobilised new and innovative funding streams for projects and to leverage private and public sector finance to ensure better bankability of projects.
He said that they also facilitated collaboration between public and private sector partners and promote accountability, monitoring and efficiency in the implementation of rental housing projects.
For more information contact:
Motsamai Motlhaolwa
Cell: 079 897 2240
Tel: 011 355 4873
