R0 to R9,999 – R0 to 9,999 – R0 to 9,999 - R0 to 9,999 – Upgrade of Existing R68,912 81% 63% 0.8 backyard rental 39 0 100% suburbs >R10,000 – > R10,000 – > R10,000 – (Good) (Average) > R10,000 – (with incentive) R79,412 70% 68% 1 National figures have been revised to accommodate for Metropolitan circumstances as follows: Land prices have been adjusted and backlog connections have been moved from basic to medium. All other costs are the same. The total number of households living in backyard rental nationally is approximately 945,000, of which 557,000 are living in metropolitan municipalities with the majority earning between R0 and R3, 499. Subsidised (RDP) housing and upgrade of backyard rental (with supply side incentive). Both interventions impact on all households. The subsidised (RDP) housing intervention has a substantially higher cost to the state than the upgrade of backyard rental intervention. Only the upgrade of backyard rental intervention results in a level of gearing from households. The upgrade of backyard rental intervention shows better developmental outcomes than does the subsidised (RDP) housing. There are no significant differences between national and metropolitan municipalities with the exception that the unit cost is slightly higher in metropolitan municipalities. New family formation Table 12: New family formation and housing ladder: National Total cost of Total funding contribution Evaluation Contribution (all towards assisted HH) Overall Impact on Contribution to Interventions Arena Unit Cost (R) Private integrated, Market R bil State (%) HH (%) Households effective (%) inclusive & Distortions % housing market equitable cities Subsidised R0 to 3,499 -100% Periphery 134,200 270 100 0 0 0 (RDP) housing All other – 0% (Poor) (Significant)
Upgrade of backyard rental (with incentive) Existing suburbs R0 to R9,999 – R68,912 >R10,000 – R79,412 39 R0 to 9,999 – 81% > R10,000 – 70% 0 R0 to 9,999 - 63% > R10,000 – 68% 100% (Good) (Average) R0 to 9,999 – 0.8 > R10,000 – 1 National figures have been revised to accommodate for Metropolitan circumstances as follows: Land prices have been adjusted and backlog connections have been moved from basic to medium. All other costs are the same. The total number of households living in backyard rental nationally is approximately 945,000, of which 557,000 are living in metropolitan municipalities with the majority earning between R0 and R3, 499. Subsidised (RDP) housing and upgrade of backyard rental (with supply side incentive). Both interventions impact on all households. The subsidised (RDP) housing intervention has a substantially higher cost to the state than the upgrade of backyard rental intervention. Only the upgrade of backyard rental intervention results in a level of gearing from households. The upgrade of backyard rental intervention shows better developmental outcomes than does the subsidised (RDP) housing. There are no significant differences between national and metropolitan municipalities with the exception that the unit cost is slightly higher in metropolitan municipalities. New family formation Table 12: New family formation and housing ladder: National Interventions Arena Unit Cost (R) Total cost of (all assisted HH) R bil Total funding contribution Evaluation State (%) Private (%) HH (%) Overall Impact on Households % Contribution towards integrated, inclusive & equitable cities Market Distortions Contribution to effective housing market Subsidised (RDP) housing Periphery 134,200 270 100 0 0 R0 to 3,499 -100% All other – 0% (Poor) (Significant) 0
FPU_Housing-finance-options-analysis_19-november-2012-2.docx