Roadshow of affordable housing in Midrand

A partner of Nedbank, International Housing Solutions (IHS), a private equity firm focused on developing residential housing, did a social impact audit with the University of Cape Town. The audit revealed direct and indirect benefits that tenants and owners derive from housing units, such as one provided by IHS in Midrand. The audit revealed that the Gauteng population could grow by a further 10 million in the next three decades, and that affordable housing is a challenge to households earning between R3 500 to 18 000 per month.

During a road show to showcase developments, Nedbank’s Sandton branch and IHS visited Midrand Village to unpack the results of the audit.

Nedbank’s head of affordable housing development finance, Manie Annandale said, “The growing low and middle class segment in South Africa is creating a robust demand for affordable houses for both ownership and rentals, yet there is not enough stock to meet the demand.”

He added that there is an increased role for the private sector to play in the supply of well-located affordable housing, for both rental and ownership. “We have 335 housing units in Midrand and tenants we spoke to approve of the units.”

Rob Wesselo, managing director at IHS, said the provision of housing goes well beyond the provision of shelter. “Development of housing instantly creates jobs for many people who are unemployed, though these usually last as long as the project,” he said.

A Midrand resident, Xolani Zulu said any low cost housing initiative is a great idea. “Midrand is a very expensive suburb, rentals range between R4 000 to R9000 and the thought of buying a house seems difficult. If you cannot afford [it] you have to go and live in the townships.”