Student housing showdown as private landlords reject 0% increase
Private student accommodation providers have warned the National Student Financial Aid Scheme that they will not accept anything less than a 6% rental increase
Image: Brendan Magaar/Independent Newspapers
Private student accommodation providers have warned the National Student Financial Aid Scheme that they will not accept anything less than a 6% rental increase for 2026, escalating pressure on the scheme to finalise accommodation rates as the academic year gets underway.
IOL previously reported that NSFAS said 2026 private accommodation rates were still under review, with the process tied to national budget allocations and other funding considerations.
“The 2026 private accommodation rates are currently under review. The process considers consumer price inflation, student academic progression, first-time enrolment figures, and national budget allocations. NSFAS will make a formal announcement once the relevant numbers are finalised,” NSFAS spokesperson Ishmael Mnisi Mnisi said to IOL.
The Private Student Housing Association (PSHA) had previously said that the delay had caused significant financial and operational strain for landlords.
PSHA said that it will not accept anything less than a 6% increase.
"The 2025 NSFAS accommodation rate for metro-based, A-grade accredited private student housing was R5,200 per student per month (2025 rate) for a period of 10 months. NSFAS does not pay for January and December, even though landlords have students during this period. Non-metro campuses’ rates were substantially lower (c. R4,600 per student per year)" CEO Kagisho Mamabolo told IOL.
"In the absence of any announced rate increase for 2026, universities are advising students and landlords to adopt the non-escalated rates from 2025 (i.e., no increase). A 6% increase would place the metro 2026 rate at approximately R5,512 per student per month, for 10 months (Feb – Nov)".
PSHA added that "this proposed adjustment is not a profit-driven increase. It is intended to help landlords keep pace with rising operational costs and to remain compliant with the Department of Higher Education and Training’s Minimum Norms and Standards"
The association said that if NSFAS does not approve the 6% increase, many landlords who comply with the DHET Minimum Norms and Standards would be forced to operate at uneconomical margins, risking deferred maintenance and reduced services.
"Some landlords may be forced to withdraw from the NSFAS system altogether, reducing available accredited beds. In most cases, leases signed between universities and landlords offer better returns than using the NSFAS system".
"This would push students into unaccredited, informal accommodations. These environments are not conducive to student studies (limited amenities, hygiene, security, wifi, etc) e.g., the University of Limpopo, with more than 10 000 students informally housed"
mthobisi.nozulela@iol.co.za
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