The department of human settlements has gazetted major changes to who can qualify for subsidised housing in South Africa.
Under the new regulations:
- The threshold of the primary market’s household income limit has been increased from R3,500 to R5,500 per month.
- The threshold for the secondary market’s household income limit has been increased from R7,500 to R15,000 per month.
The changes follow a number of commitments made by minister of Human Settlements Lindiwe Sisulu last year, in which she promised to help address South Africa’s ‘missing middle’ – South Africans who earn too much to qualify for subsidised housing, but receive too little to be approved to buy their own home.
“These adjustments ensure that the social housing programme continues its focus on including the primary target market in well-located projects so that the poor are integrated into cities,” she said in a statement in June last year.
“These adjustments also ensure that more young professionals, or gap market will now benefit from government rental subsidized housing and for developers it means they have more funds to provide spacious and decent rental stock.
“Due to the inflation over the years, the social housing programme was no longer able to grow; with these adjustments production of units will grow resulting in increased performance by the sector.
The adjustments will also help bring in the required revenue from families in the gap market while continuing to accommodate families on the lower end of the income ladder, she said.