Western Cape leads the way with Inclusionary Housing Framework and Housing Market Studies

“The Western Cape Government is working to address the legacy of problematic historic spatial urban design with our Inclusionary Housing Policy Framework, which is being supported by several housing market studies in towns throughout the province,” Anton Bredell, Western Cape MEC of Local Government, Environmental Affairs and Development Planning said in response to an Interpellation posed by Brett Herron, MPL of the GOOD party in the provincial legislator today.

The Western Cape Inclusionary Housing Framework Policy, a first for South Africa, is made available to local governments in the province on a voluntary basis, as a tool to plan and engage with private sector developers to increase housing opportunities close to economic centres for people who cannot afford to purchase or rent in those locations.

“It is imperative for economic growth that people should be able to live closer to employment opportunities. The Framework creates a platform for local authorities and private sector developers to negotiate around building approvals, land use rights, and other administrative fees, in exchange for a number of social housing opportunities in these developments,” MECr Bredell explained. 

Stellenbosch Municipality adopted the first Inclusionary Housing Policy Framework in the province and used it to develop an overlay zone for the Adam Tas Corridor catalytic development and an inclusionary zoning policy, which provides inclusionary housing opportunities for a broader set of well-located areas of the municipality. The Adam Tas Corridor overlay zone is expected to deliver between 2 753 and 3 835 inclusionary housing units over the next ten years.

Mossel Bay used a different approach, and while the town does not currently have a formal Inclusionary Housing Policy, the municipality has effectively facilitated the provision of affordable housing by approving developments that include an affordable housing condition. These include:

 

• The Mountain View project, with approximately 200 financially subsidised units.

• The Louis Fourie Corridor project of which about 2 000 units are expected to provide for the gap market segment.

• In Diaz beach, the municipality sold land with affordable housing conditions in the Deed of Sale, making provision for 55 affordable units of a larger development.

• A new development in Hartenbos also has an affordable housing component approved in it, comprising of approximately 300 units.

• The municipality has also adopted a Social Housing Strategy and has a designated a Restructuring Zone, primarily focused on land owned by the municipality It is anticipated that these 3 sites will yield approximately 750 affordable housing units. 

“We also recognise the need for municipalities to base their residential spatial policies on solid housing market data, therefore the Western Cape Government has funded the development of Housing Market Studies in 2022 and 2023,” MEC Bredell said. The Department of Environmental Affairs and Development Planning completed housing markets studies for George, Mossel Bay, Drakenstein, and Stellenbosch in 2022, and Housing Market Studies commenced at the end of 2023 for towns in 7 additional municipal areas: Knysna, Bitou, Oudtshoorn, Saldanha Bay, Swartland, Breede Valley, and Overstrand. 

“The Housing Market Studies enables municipalities to make informed decisions about the housing market dynamics at play within their own municipal areas, enabling them to tailor appropriate affordable or inclusionary housing policies. Ultimately, the housing market studies give a thorough view of the supply and demand in various housing segments of a town. Overwhelmingly, these have shown significant under supply in the entry level and affordable housing categories throughout the towns assessed so far. Property ownership remains one of the central economic pillars on which families can build financial security and create intergenerational wealth. It is therefor in the interest of each municipality in the province to better understand its unique housing market,” MEC Bredell said.

“As we reflect on the progress made since the approval of the Western Cape Inclusionary Housing Policy Framework in October 2022, it is clear that the journey towards spatial transformation and the delivery of affordable, well-located housing in the Western Cape is underway in earnest,” MEC Bredell concluded.

Contact:
Wouter Kriel
Spokesperson for MEC Anton Bredell
Western Cape MEC of Local Government, Environmental Affairs and Development Planning
079 694 3085
Email: Wouter.kriel@westerncape.gov.za