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Urgent interventions are needed to address the recent unaffordable tariff increases by the Buffalo City Metropolitan Municipality (BCMM) on social housing tenants. The increased cost of municipal services threatens to push many social housing tenants into becoming backyard dwellers.

The Democratic Alliance (DA) calls on Eastern Cape Human Settlements MEC, Siphokazi Lusithi, to prevent the housing crisis.

BCMM's recent tariff hikes, including a 12.07% increase in electricity rates and a monthly surcharge of R376 for prepaid customers, are particularly burdensome for low-income and middle-income residents (those earning between R1,850 and R22,000).

These increases will likely result in a higher default rate on municipal service bills, making it increasingly difficult for these residents to afford their homes.

The Own Haven Housing Association has already indicated that these tariff increases will hinder its ability to provide affordable housing opportunities for those in the gap market. This situation underscores the need for the Eastern Cape Human Settlements Department to consider not just the number of social housing opportunities available but also the affordability and sustainability of these options for tenants.

The Social Housing Regulatory Authority currently sets rental rates that exclude municipal services, with an average rental base of R3,377 and an average rental quote of 31.5%. This financial strain highlights the urgent need for discussions among various role players in the human settlements sector to address the slow and inconsistent growth of social housing grant funding.

We call on MEC Lusithi to:

Engage in discussions with BCMM Mayor Princess Faku about the impact of unaffordable tariff increases on social housing tenants.

Address how these tariff increases affect low- to middle-income earners, particularly residents in the Breaking New Ground (BNG) programme.

Convene an urgent meeting with stakeholders in the human settlements sector in the Eastern Cape to tackle the challenges of municipal service costs and available land options for BNG and social housing.

Ensuring that low to middle-income earners have access to affordable housing opportunities is crucial. We must address the issue of unaffordable municipal service costs to prevent further displacement and hardship for our communities.

Issued by Chantel King MPL - DA Shadow MEC for Human Settlements