11 February 2009
Government has budget R14 billion over the Medium Term Expenditure Framework
period (MTEF) to upscale delivery in the rental accommodation and address
affordability and access of the poor to rental accommodation. The amount is as
part of the R26 billion funding requirement to meet the national target of 100
000 rental housing units over five years .This emerged at the national rental
housing roadshow hosted by the North West Department of Developmental Local
Government and Housing in Mafikeng on Tuesday.
The objective of the road show attended by municipalities and mining houses
in the province was to enhance the delivery mechanism for the implementation of
the strategy. The strategy sets out national targets of rental stock to be
delivered hence it is important for all three spheres of government to embrace
the programme and provide necessary support for the successful implementation
of the strategy.
The need for the strategy was informed by the housing delivery plan that
government has been implementing since 2004 called breaking new ground .The
plan is about the creation of vibrant and sustainable human settlements with
amenities on well located land, it is a shift from a one-size-fits-all approach
in housing, to promoting mixed income and mixed tenure housing options.
Market indicators have shown that:
* the demand for rental accommodation is rising at least 7 percent per annum
for individuals earning between R1600 - R3200
* since the age limit for subsidy qualification has been dropped from 21 to 18
years, this is likely to increase the rental housing demand since this age
group is likely to prefer renting accommodation as opposed to buying
property
* rental housing demand is projected to grow to over 130 000 units per year by
2011.
The strategy targets lower and indigent income target market and offers
incentives and support for small landlords, faith based organisations, informal
landlords and other key rental stakeholders. Municipalities were urged to avail
serviced land for the province to meet its target of 7400 units. As part of the
roll-out of the strategy, pilot projects for the community residential units
are currently underway in Rustenburg, Tlokwe, Matlosana and Lekwa Teemane Local
municipalities.
Enquiries:
Lesiba Moses Kgwele
Tel: 018 387 3814
Cell: 083 629 1987
Fax: 018384 5426
E-mail: Lkgwele@nwpg.gov.za
Issued by: Department of Developmental Local Government and Housing, North
West Provincial Government
11 February 2009
