http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.09Change: -0.09
R/$ = 10.74Change: -0.08
Au 1266.42 $/ozChange: -20.76
Pt 1411.50 $/ozChange: -12.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Dec 02, 2011

Deeds delays hurting RDP housing beneficiaries

Back
Construction|Engineering|SECURITY|Africa|FinMark Trust|Housing|Security|Africa|South Africa|Security|Finance|Security|Kecia Rust|Security|Eastern Cape
Construction|Engineering|SECURITY|Africa|Housing|Security|Africa||Security|Security|Security|
construction|engineering|security|africa-company|finmark-trust|housing|security-company|africa|south-africa|security-facility|finance|security-industry-term|kecia-rust|security-person|eastern-cape-province-or-state
© Reuse this



Delays in registering title deeds for government-subsidised housing are denying over one-million beneficiaries an entry point into the formal property market, undermining their financial security, the FinMark Trust said this week.

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 Property Developments News
Wilson Bayly Holmes-Ovcon (WBHO) had delivered “a reasonable performance” for the financial year ended June 30, said CEO Louwtjie Nel on Monday. “We are getting through this tough period. It hasn’t really improved much over the past two, three years, even...
Article contains comments
South Africa’s development is being hampered by a serious shortage of skilled engineers, especially in the public sector, and the situation has been described as one of the worst capacity crises in years, a research report by professional body Royal Institution of...
More
 
 
Latest News
TNPA CEO Tau Morwe
Updated 2 minutes ago The announcement of the successful bidder for the construction of Durban’s long-awaited passenger cruise terminal was imminent, Transnet National Ports Authority (TNPA) CEO Tau Morwe told delegates at the African Ports Evolution Conference in Durban on Tuesday. ...
Professor John Briscoe
Updated 19 minutes ago Global leaders are gathering in Stockholm, Sweden, this week for the twenty-fourth annual World Water Week, at which South African native Professor John Briscoe will on Thursday be awarded the Stockholm Water Prize from King Carl XVI Gustaf of Sweden at a ceremony in...
Updated 23 minutes ago Despite being Africa’s economic powerhouse, South Africa has fallen behind in terms of the number of people per 100 that have access to fixed and mobile broadband, Saab Grintek Technologies CTO Suraj Ramlall said on Tuesday. Broadband in South Africa was generally...
More
 
 
Recent Research Reports
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...
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.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
South African State-owned defence industrial group Denel has announced its fourth consecutive year of profits. The group's results for the financial year 2013/2014 were recently announced at its head office in Centurion, south of Pretoria. Revenues grew by 17%, net...
There is little opportunity for JSE-listed infrastructure company Group Five to grow shareholder value in the domestic market, says CEO Mike Upton. He says value can still be found in the private sector, in the renewable and industrial power sector, as well as in...
The National Association of Automobile Manufacturers of South Africa (Naamsa) has announced the event dates of the 2015 Johannesburg International Motor Show (JIMS). The event will take place from October 14 to October 25, 2015, at the Johannesburg Expo Centre, Nasrec.
UK engineering support services provider Babcock is set to deliver the largest order of global truck manufacturer DAF’s truck tractors in Southern Africa to bulk carrier road-based logistics company Ngululu Bulk Carriers (NBC), with 133 trucks to be delivered in...
Digital radio communications in the African local government space can open up the world, but have many challenges to overcome, notes integration and migration of legacy radio communications infrastructure with digital mobile radio company Emcom Wireless head of...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks