The affordable housing sector has lashed out at the President Cyril Ramaphosa-led government saying that, despite another year under its belt, it still has not fixed the bottom-end of the property sector that affects tens of millions of South Africans.

This comes as the country heads toward another difficult State of the Nation Address for President Ramaphosa on Thursday evening - in the backdrop of an ailing economy, a tenuous government of national unity, rising unemployment, and rising homelessness.

“Government has mainly failed in the affordable housing sector because of their obsession with mega projects in the outskirts and not bringing small-scale developers (those actually delivering housing to those left out of the mainstream property sector) and townships and inner-cities along, said Lusanda Netshitenzhe, chief executive of TUHF21.

She says there "remains a deep demand for affordable housing, both for rental and ownership, across the country but the regulatory issues continue to stifle supply at scale.

“Small scale developers are inadvertently disadvantaged by these regulatory requirements - such as town planning and land use processes/approvals - because they can’t afford the time and costs associated with compliance.”

Kecia Rust, housing specialist executive director and founder of the Centre for Affordable Housing Finance in Africa, directly addressed the president:

“Mr President get the title deeds right. Another Sona and there are still millions of South Africans living in homes without title deeds.

“This is a serious problem: not only does this threaten their security of tenure, it also means these households, among South Africa’s poorest, can’t offer their home as an inheritance – totally undermining the intergenerational wealth transfer that the original housing subsidy policy imagined.

“This is not an impossible thing to fix: we know how to do it.

“But it requires the energy of a national programme, with support and a mandate for action at the local level.

“There are very many officials in cities across South Africa who want to support their constituents with good services, delivering the title deeds they were promised.

“What has been missing is the coordinated effort to engage, house by house, with the complex legal, infrastructural and social blockages that have accumulated over the years.

“Presidential leadership, making this an implemental priority, is critical. And, Mr President, it will transform South Africa’s property market profoundly, giving expression to the original intentions for a better life for all.

Zama Mgwatyu, DAG programme manager says that as "we continue to see accelerating urbanisation and semi-urbanisation in the areas that lie between primary and secondary cities, access to affordable rental accommodation remains a critical challenge that the GNU government, led by President Ramaphosa, needs to prioritise for the remaining years of the current administration“.

“Early this year we saw the gazetting of the White Paper on Human Settlements.

“Alarmingly, this White Paper does very little to acknowledge, incorporate or strengthen the capacity of micro-developers to deliver affordable rental accommodation in metropolitan areas.

“We call upon the President to prioritise the development of innovative modes of support to enable the scaling up of small-scale rental housing.

“The work of micro-developers not only reduces the current pressure on urban housing delivery, but also supports the introduction of black township developers to the property market, makes the process of land acquisition for human settlement development more accessible, and catalyses the growth of the township economy.”

Associate Professor François Viruly, property economist and director at the Urban Real Estate Research Unit, University of Cape Town says that last year the president highlighted that SA households suffer from asset poverty .

“One way of addressing this is to ensure that we resolve the issue of the 1.6 million households who received a government sponsored home without title deeds. We need to ensure that these households benefit from the full bundle of legal rights associated with home ownership.

“Unleashing property markets is probably one of the most impactful interventions that government can do to unleash value for lower income households. It has also become clear that government will need to rely on small-scale property entrepreneurs to supply the market and to avoid the SA housing crisis to deepen even further.

“I feel that we have seen the further development of policies with the approval of the Human Settlements white paper and the housing consumer protection Act , but we are still failing to see interventions that seriously recognise and support the role of the market and small scale developers in addressing the housing backlog.

“We need a comprehensive approach that goes well beyond the disbursement of government housing grants. The handing over of title deeds is also not moving fast enough. The delivery of housing can have a substantial impact in promoting household welfare, the rates base of municipalities and the promotion of local economic growth.

Glen Jordan, co-founder of Empowa, a company that addresses the global housing shortage through its finance model, believes President Ramaphosa should prioritise affordable housing as a key driver of economic growth, focusing on those excluded from the financial system and the development of townships as engines of prosperity.

“Millions of South Africans in the informal sector lack access to mortgage financing, leaving them trapped in inadequate housing conditions.

“By focusing existing government-backed financing on this sector and alternative credit models, his administration can unlock affordable housing development for marginalised communities.

“With housing and construction contributing significantly to GDP, a structured approach to affordable housing and township development would generate widespread economic benefits, increase consumer spending, and reduce economic inequality, fostering long-term national prosperity.”

Meanwhile Deon can Zyl chairperson for the Western Cape Property Development forum warned the President: "We note that SONA takes place in context of the coalition government with parties having agreed to work together but not necessary aligned on policy concepts. The property industry requires line of sight on the future and certainty about the future policy context.

“We trust that the President will give clarity and certainty on policy so that the fixed-capital industry can make informed decisions on whether to invest in the country. The industry needs line of site on the future."