Issued by: Government Communications (GCIS)
STATEMENT BY HOUSING MINISTER SANKIE MTHEMBI-MAHANYELE ON THE DRAFT RENTAL HOUSING BILL, 1999
INTRODUCTION
The decline in the investment in retnal housingstock has led to an imbalance in the rental market. Signs that the market is not operating well are high rentals, disputes between tenants and landlords, lack of maintenance to, and sometimes the abandoment of the buildings.
There is a serious shortage of low cost rental stock and the current subsidy policy does not specifically promote the business of providing rental housing. Public sector investment in rental housing is limited mostly to municipal housing schemes established in the previous dispensation. A strong demand exists for rental housing, especially for the income group R1 500 - R3 500 per month. Rental in urban areas is often preferred because owenership tends to limit economic mobility. Ownership is also often preferred in traditional areas.
The White Paper on Housing, 1994, recognises the need to promote rental housing, but the institutional subsidy has so far made little impact. Current national housing policy tends to promote owenership ahead of rental.
Currentely, the Rent Control Act. 1976, is discriminatory as it applies to a negligible portion of rental stock on a racial basis including age of the premises or income and age of the tenant. It is also outdated and replacement of the Rent Control ACT by appropriate legislation will contribute to the normalisation of the housing rental market.
AIMS OF THE BILL
The seeks to:
enhance private investor confidence in the housing rental market by removing the perceived threat of rent control'
provide a financial incentive that will encourage the private sector to invest in the rehabiliation/conversion of buildings or the construction of new higher density affordable housing for rental'
direct new private investment in rental housing to innter city areas;
promote the establishment of a sustainable social housing movement by recognising, and providing policy and financial support to the Social housing Foundation in it's advocacy. development and capacity building efforts;
mobilise private management capacity and expertise in the administration of rental housing for historically disadvantaged persons;
introduce measures and mechanisms to resolve conflict between landlords and tenants and to normalise the housing market in areas of propven instability;
afford tenants added protection by expanding on their constitutional and contractual rights and prescribing fair and transparent practises in the letting of houses; and
promote integrated and balanced urban planning and development.
In addition, the Bill introduces Rental Tribunals whose responsibility is to resolve disputes between the landlord and tenant. We believe that a negotiated settlement based on fairness and agreed upon by both parties is the desired option that will provide lasting solutions to tenure problems.
SUMMARY
The Bill promotes access to rental housing for the historicall disadvanteg people, by regulating housing rental matters only in areas where a severe breakdown in landlord/tenant relations has accurred.
Furthermore it seeks to address the breakdown in landlord/tenant releations by providing for the identification and regulation of affected areas, and for the establishment of Housing Rental Tribunals to overseee and normalise affected areas.
The Bill prescribes the form and minimum content of the written lease agreements supported by stringent penalties for the infringement of tenants rights and the non-adherence of statutory obligations. It boldly threads the fine line by balancing the needs of the tenant and advancing the statutory rights of the landlord by promoting a human rights culture in an area fraught with abuse.
Lastly in order to obviate the possible extension of rent control the Bill proposes that the Rent Control Act, 1976, be repealed. By so doing the new legislation will contribute to the normalisation of the residential rental market in South Africa.
For more information, contact: Gege Kekana Phone: (012) 44-1879/4211311 Cell: 083-457-8577