by Tertuis Simmers
The demand for affordable, well-located housing across our province and South Africa far outstrips the supply, and the reality is that our provincial budget from the national government does not match the scale of our needs.
Our budget is, in fact, shrinking due to the financial crisis in which the national government finds itself.
However, we are determined to find innovative new ways to empower residents, to build and develop finance models that make affordable housing within reach of every person who wants a place to call home. The Western Cape government has made significant strides in addressing our housing challenges.
One of our focus areas has been on the “missing middle” – citizens earning “too much” for state-subsidised housing yet “too little” for a substantial bond.
One of our first and most successful programmes has been the First Home Finance Programme (FHFP) which has benefited more than 6 100 families between 2019 and 2024. The FHFP is a one-off housing finance subsidy that enables qualifying beneficiaries to buy or build their first homes on an affordable basis. This allows them to break into the housing market and leave a legacy for their children.
To further accelerate progress, our Affordable Housing Programme remains a priority. We are expediting subsidies and exploring innovative avenues to meet the demand. For instance, the Rental Housing Norms and Standards, gazetted in 2023, enable efficient delivery of densification and formalisation of the backyard rental market. This fosters entrepreneurship and accommodation across various income groups.
Recognising budget constraints, we launched the Western Cape Asset Finance Reserve for Human Settlements in 2021. In its first year, it financed more than 800 FHFP houses in critical projects like Our Pride and Forest Village housing developments in the Cape Town metro.
Finding innovative ways to make housing more affordable, we piloted the Deferred Ownership Project in 2022. This is the country’s first rent-tobuy programme which helps first-time homebuyers improve their credit rating and qualify for finance. We aim to expand this to more municipalities to empower more aspiring homeowners.
To date, we have injected R170 million into multiple projects all aimed at making housing more affordable.
Our Land Release Programme has facilitated successful public-private partnerships, exemplified by the Blue Rise housing development. By leveraging such partnerships, we’ve completed 423 houses in a mixed housing development catering to affordable and open-market options.
Looking ahead, our Social Housing Programme continues to play a vital role in developing permanent rental opportunities in economically vibrant areas. The delivery of 2 000 social housing opportunities since 2019 in well-located areas, such as Maitland Mews and Bothasig, reaffirms our commitment to spatial transformation and consolidation to reverse apartheid spatial planning. Excitingly, the expected delivery of 1383 units at Conradie Park Phase 2 and Goodwood Station in the coming months adds more affordable units close to economic hubs and government facilities.
We are dreaming big and will be leveraging R4.3 billion in grant funding and R1.2bn of private sector investment to launch 29 social housing projects in the next three financial years. The efforts align with our goal of providing safe, well-located housing options for all residents.
As we continue on this journey, we are acutely aware that despite all our efforts, more can and must be done, and we will continue to work towards our goals of creating affordable, safe, transformative homes and communities. Through strategic partnerships and innovative approaches, we are working to ensure a brighter future for all Western Cape residents. Together, let us build a province where everyone has a place to call home.
* Tertuis Simmers is the Infrastructure MEC for the Western Cape.
** The views expressed here are not necessarily those of Independent Media.
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