SA Affordable Housing March / April 2018 // Issue: 69 - Page 40

AFFORDABLE HOUSING MATTERS FEATURES The transformative impact of effective social housing goes beyond the beneficiaries. 38 MARCH - APRIL 2018 AFFORDABLE SA HOUSING While this is a very welcome paradigm shift, it presents several challenges to those involved in delivering this appropriate social housing, not least of which is a shortage of available, well-positioned land and the significantly higher costs involved in developing that land properly. In an already challenged economy, the higher cost factor can be particularly limiting in terms of government’s ability to deliver on its social housing promises. The highly regulated nature of social housing also demands a specialist approach to manage specific risks. The solution, of course, is for more impactful affordable housing partnerships to be established between the country’s public and private sectors. In recent years, a number of these strong partnerships have evolved, and many of the participants in these partnerships – such as the Social Housing Regulatory Authority (SHRA), The Housing Impact Fund South Africa (HIFSA), the Centre for Affordable Housing Finance in Africa and International Housing Solutions (IHS), to name a just a few, are succeeding in demonstrating how much can be achieved through a committed, innovative, partnership-driven approach to social housing delivery. As a market leader in commercial property finance, Nedbank CIB has the privilege of partnering with many of these housing organisations and authorities and has witnessed first-hand the transformative impact that effective and appropriate social housing can have – not just on the beneficiaries of these housing opportunities, but on the sustainable economic growth of communities and the country. Access to housing is, and always will be, a cornerstone of South Africa’s socio-economic advancement, effective redress and real opportunity creation for all. As such, it is encouraging that government recently prioritised social housing delivery and has set a medium-term target for social housing stock of 27 000 units. While this represents a step change in fiscal commitment to the social housing industry, the public and private sector - including property financiers, developers and investors – must work together The private and public sector must work together to accelerate mobilisation in the market. More impactful affordable housing partnerships to be established between the country’s public and private sectors. to find solutions to accelerate the mobilisation of this key segment of the market to ensure its continued growth and maximise its effectiveness as a transformation lever that helps create better futures for all South Africans.