By Wallace B.A.
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There is therefore a real danger that a policy approach, which emphasizes the benefits of owner occupation, and provides various incentives for it, may result in the creation of a large underclass that is denied access to any form of affordable or acceptable housing. This fails to take into adequate account the variety of legal and socially accepted traditions in land tenure systems and distorts land markets in favour of one system at the expense of all others. This is hardly consistent with the objective of improving the equity of urban land and housing markets… The important point is that policies, which emphasize and encourage freehold, may unintentionally or inadvertently discriminate against other forms of tenure that may be more appropriate for large sections of the population.
A large number of direct and refinancing public sector institutions also exist, with a mandate to provide credit facilities to the poor at lower than market rates of interest and longer repayment periods (Banerjee, Chapter 2). In South Africa housing plays a significant and leading role in the urban development agenda. Urban settlement intervention is narrowly focused on the provision of infrastructure and housing and funding is rigidly structured to match this. A standardized capital grant is allocated to defined categories of beneficiaries.
Project funding is flexible, without reference to beneficiary qualification criteria, an enormously divisive, complex and potentially corrupt aspect of South Africa’s subsidy administration system. There is much more emphasis on aspects such as social infrastructure, enhancing transport access, street lighting, sanitation services and the numbering of properties (Engelbrecht et al, 1999). Housing is not the primary activity within any programme. It is only a priority where people need to move from unsafe conditions, and no funding is provided for the construction of houses, except for relocation (ibid).