A detailed analysis of Khayelitsha’s small rental market in 2020 reveals that the market is thriving despite no support from government.
Individuals expanding their homes or adding other rooms and structures to develop rental opportunities on their land is the drive of this market. These additions are formal or informal.
Following this study, the City’s Council approved a report in September 2020 that concluded that the City should consider incentives for private property owners in incremental housing zones to assist with the provision of affordable rental accommodation. With the support of the City Council, City officials have made noteworthy progress over the past 18 months in developing initiatives to stimulate this trend and facilitate the development of this form of accommodation for individuals in apartment buildings.
The progress to date is as follows:
- A report on a proposed overlay zone to identify areas appropriate for small-scale rental units has circulated to sub-councils for their input and comment.
- A draft menu of proto-typical building plans for small-scale rental units is now being developed. Once concluded, the landowner will be able to select a plan from this menu and submit it to the City for approval in terms of the National Building Regulations.
- A review is underway to determine the development contributions payable by those developing small-scale rental units.
- The City has entered a memorandum of understanding with registered financial institutions making development finance available to this sector.
- The City has committed to supporting the roll-out of an academy where contractors and developers can be trained.
The City is working in partnership with the Development Action Group, Human Research Council, and financial institutions to promote and assist the interest of this important sector.
