Government announces new housing subsidies and RDP structural improvements

South Africans struggling with inferior living amenities while on the waiting list for housing were relieved to hear that government was implementing new housing subsidies and improvements to the RDP model aimed at addressing the challenges of human settlements in the country.

In a media briefing, Minister Mmamoloko Kubayi acknowledged that the challenges facing human settlements in the country are immense, with many people still waiting for houses, while living in informal settlements without basic services.

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Kubayi said that the update was prompted by the Department of Human Settlements’ need to outline how it will respond to the changing economic, climatic and environmental conditions in the human settlements.

Subsidy quantum, enhancements and Emergency Housing Programme

The focus of the briefing, however, was on changes to the subsidy quantum, enhancements to fully subsidised housing, and a new approach to the Emergency Housing Programme.

Kubayi said that last year, the subsidy quantum was increased to address the inflationary impact of building materials, accelerated by the Covid-19 pandemic and the July 2021 riots.

However, he said that with the current economic situation, the department has decided to make further increases to ensure the pace of delivery and quality of homes provided to beneficiaries.

“We are increasing the subsidy quantum with 29.7% for the 2023/2024 financial year, mainly to address the ever-increasing building costs. The adjustment will ensure that we speed up the pace of delivery and also deal with the quality of homes we provide to beneficiaries,” he said.

From 1 April 2023, the housing programmes will be adjusted as follows:

• Breaking New Ground (BNG) services and top structure will move from R196,887 to R255,364

• House for persons with disabilities will move from R209,071 to R271,166

• Military veterans’ houses will move from R240,607 to R312,069

• First Home Finance will move from R130,505 to R169,265

• Social housing will move from R327,667 to R424,984

RDP structure model

Kubayi also touched on the enhancements that were to be made to the RDP housing model, which include the fitting of solar panels to every unit, providing access to basic electricity for households without access to infrastructure.

He said that burglar bars will also be fitted to units delivered to persons with disabilities to improve security, as it has come to their attention that the houses they provide to persons with disabilities were vulnerable to burglaries and other security issues.

Kubayi said that the Emergency Housing Programme will also see changes, with a focus on a more appropriate human settlement disaster response to alleviate the plight of those affected by natural disasters.

He said that the recent floods in Port St Johns, which left hundreds of families affected and 205 people homeless, highlight the need for a swift response to natural disasters.

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