The challenge facing social housing institutions in South Africa : a case study of Johannesburg

The rapid growth in housing demand represents a mammoth task for both the present and future housing policy in South Africa. Local Government in an effort to address this challenge has placed a high premium to inner-city regeneration. An important part of this regeneration is the development of social housing. Since inception the social housing institutions have been struggling to meet their mandate due to end-user default in rental payment and these calls for investigation. The problem of default in rental payment by residents of social housing institutions has reached a crisis point in addressing housing challenge facing the country. Some of the social housing institutions have reached a point that this tendency might force them to close down. Hence, this investigation intends to find out the underlying reasons behind the inability of the end-users in meeting the set obligation in relation to rental payment. This investigation will be based on a literature review. This finding will be contextualise in Johannesburg as a case study because this happen to be one of the municipalities with both a high rate of migration and attendant housing shortage. Affordability, confusion in understanding the terms and conditions of the rent/lease and culture of entitlement and lack of proper check on the prospective end-user were found to be one off the reasons why most default in payment. Added to this is shift in labour practice from permanent to contract appointment as a result of global economic meltdown and the pandemic of HIV/Aids. This investigation also finds out that the social housing sector is to some extent bringing a new lease of life to inner-city regeneration. For rental housing to be sustainable it is basically meant for people who have regular income and who can afford to pay as they are based on cost recovery. There is need for training and proper end-user awareness of the rent/lease terms and conditions so as to create understanding and avoid default in payment