Dec 02, 2011
Deeds delays hurting RDP housing beneficiariesBack
Construction|Engineering|SECURITY|Africa|FinMark Trust|Housing|Security|Sustainable|Africa|South Africa|Security|Finance|Security|Kecia Rust|Security|Eastern Cape
© Reuse this
It said research showed that only 1.44-million reconstruction and development programme (RDP) houses were registered at the Deeds Registry by September last year, while the Human Settlements Department indicated it had, or was busy constructing, 2.94-million houses at the time.
This implied that over one-million completed subsidy houses have not been registered on the deeds registry.
While it could mean that some houses were still under construction, FinMark Trust housing finance coordinator Kecia Rust told Engineering News Online that only about 200 000 RDP houses were probably in the construction phase during its research.
“Since 2004, the number of subsidised houses registered as a proportion of those reported delivered has plummeted, reaching a low of 17% in 2007,” Rust said.
Title deeds protect rights to a property and record changes in ownership. They provide individuals with an address, recognising the owner as being part of the municipality and enabling the owner to secure finance, or to bequeath the asset to family members.
The failure to provide title deeds meant beneficiaries were being denied a point of entry into the formal property market. Beneficiaries were not able to sell their houses formally and as a result, engage in informal transactions, which ultimately undermined the individual property owners’ tenure security and the integrity of the Deeds Registry in South Africa, Finmark stated.
“It appears that the decline in registration is linked to a change in the progress payment regime. In 2004, the requirement that title be transferred before payment was removed. It is also possible that from municipalities’ sides, the urgency for title is reduced in the face of the eight-year sale restriction on RDP housing, which was passed in 2001.
“If these houses had been registered, the 2.94-million houses would comprise about 39% of the entire residential property market,” the research pointed out.
Meanwhile, the research found that government-subsidised housing was valuable to beneficiaries and was having a profound impact on the growth of local economies and sustainable human settlements across South Africa.
While the financial asset value of houses was overlooked by the majority of households, a significant minority were using their homes to gear finance. Between 1994 and 2010, 120 000 mortgage loans were issued against subsidised housing, and 90 858 have even sold their homes and purchased second properties.
“Even at these small proportions, the extent of finance mobilised by these assets is not insignificant. Subsidised properties have been used to secure roughly R20-billion in mortgage finance, signifying that the government-subsidised housing market is slowly beginning to resemble a normal market,” Rust said.
By matching subsidy applicants with properties, a total of 1.7-million subsidy applicants were identified as property owners of 1.44-million properties. Just under half of these properties were found to be located in the eight metropolitan cities, with the highest number of registrations across the provinces found in Gauteng at 395 765, the Eastern Cape at 238 682 and the Western Cape at 208 852.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Other Infrastructure News
Updated 4 hours ago Gauteng will spend more than R94-billion on both social and economic infrastructure projects over the next three years, Finance MEC Barbara Creecy said on Wednesday. “By investing in social and economic infrastructure, including quality public transport,...
Updated 3 hours ago Dual-listed oil and gas company SacOil has completed Phase 1 of the field development operations at the Lagia oilfield in Sinai, Egypt. The South African-based independent company, through its subsidiary Mena International Petroleum Company, also completed hydraulic...
Updated 3 hours ago The City of Johannesburg, whose environmental policy innovations include an integrated waste management plan that covers all relevant environmental legislation, has been named the country’s most environment-friendly metropolitan municipality in the Department of...
Updated 3 hours ago The South African Renewable Energy Council (Sarec) has welcomed the conclusions of the Council of Scientific and Industrial Research’s (CSIR’s) ‘Financial benefits of renewables in South Africa in 2014’ report, published on January 21. “The results of this study...
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
This Week's Magazine
Three-dimensional (3D) printers being sold in South Africa by electronics distributor Rectron currently print in two types of plastic, but have a clear upgrade path over the next five years to eventually print in wood, ceramics and metal-alloy materials, says Rectron...
The world’s two dominant commercial aircraft manufacturers, Airbus of Europe and Boeing of the US, both recently announced that they had made record aircraft deliveries in 2014. Boeing set a global record for the industry with 723 commercial aircraft delivered, while...
The Western Cape is shifting further into the renewable-energy space with the official opening of a factory specialising in solar inverters, a key component of solar photovoltaic (PV) plants. The investment in the manufacturing facility in Cape Town aims to boost the...
Business Leadership South Africa (BLSA) last month welcomed Cabinet’s establishment of a technical team war room to undertake various interventions to improve electricity supply security over the short- and medium-term, but added that the private sector also had a...
Despite a rapid rise in mobile connections and the economic and social benefits of such connectivity, more than half of the world ended 2014 unconnected. For this reason, industry commentators believe the biggest impact of mobile technology is still to come –...