Household Resilience Is Tied To The House
Finweek English|8 October 2020
The key success of the national housing programme is undermined by the title deeds backlog.
Illana Melzer and Kecia Rust
Household Resilience Is Tied To The House

Since 1994, the South African government’s national housing programme has completed an estimated 3.4m housing units and handed these over to the lowest-income families in the nation. An estimated 2m of these houses are formally registered on the deeds registry, and subsidy housing stock now accounts for just under one-third of all formally registered residential properties in SA. For the households who were fortunate enough to receive a subsidised house, it is probably the most valuable asset they will ever own.

In the context of Covid-19, this asset could provide valuable support to low-income households, improving their resilience and broadening their options for responding to the crisis. It could also be the key to unlocking productivity growth and private investment in an economy after Covid-19 – something we will very clearly need.

Except, in many cases, this value is inaccessible. Too many housing assets are dead capital, to use the terminology of Hernando De Soto Polar, the Peruvian economist. In lower-income neighbourhoods across SA, ownership as reflected in the deeds registry is a far cry from reality. Most often the de facto ‘owner’ of a property does not match the person officially listed as the owner on the title deed. This may be the result of off-register or informal transactions facilitated by community based organisations such as street committees rather than conveyancers, or housing assets remaining in deceased estates that are never wound up.

This story is from the 8 October 2020 edition of Finweek English.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

This story is from the 8 October 2020 edition of Finweek English.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

MORE STORIES FROM FINWEEK ENGLISHView All
THE HEALTH OF SA'S MEDICAL SCHEMES
Finweek English

THE HEALTH OF SA'S MEDICAL SCHEMES

As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.

time-read
7 mins  |
5 November 2021
The effect of Gilbertson's departure
Finweek English

The effect of Gilbertson's departure

With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.

time-read
3 mins  |
5 November 2021
Making money from music
Finweek English

Making money from music

Why investors are increasingly drawn to the music industry.

time-read
3 mins  |
5 November 2021
Conviction is key
Finweek English

Conviction is key

Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.

time-read
5 mins  |
5 November 2021
The post-pandemic toolkit
Finweek English

The post-pandemic toolkit

How CFOs can use technology to support growth.

time-read
4 mins  |
5 November 2021
Big city living exodus
Finweek English

Big city living exodus

Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.

time-read
3 mins  |
5 November 2021
Big compact, big value
Finweek English

Big compact, big value

Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.

time-read
3 mins  |
5 November 2021
On barriers to entry
Finweek English

On barriers to entry

There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.

time-read
2 mins  |
5 November 2021
Fear and greed in one index
Finweek English

Fear and greed in one index

To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.

time-read
3 mins  |
5 November 2021
Africa's largest data centre facility coming soon
Finweek English

Africa's largest data centre facility coming soon

Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.

time-read
3 mins  |
5 November 2021