Locals were up in arms after Govan Mbeki Municipality has disowned houses built on its yard.
Mr Bheki Kubheka, municipal spokesman, said a house that was set alight by unknown people recently, did not belong to the municipality.
Residents said the house that was burned down used to be a show house where those who were applying for houses, would choose from.
It is alleged that the house was burned by disgruntled locals who were not happy with electricity cuts in the area.
The mob broke all the windows before they set the house alight.
The municipality said the house was used by a local dressmaker who was given permission to use the house.
Mr Kubheka said it was let as part of community empowerment.
The damage to the house is estimated at R100 000.
This was the only building that was set alight among the five buildings on the municipal yard.
The other buildings are used by a salon, a dentist and a traditional healer.
Police are investigating arson.
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