Knysna feels the effects

POST-FIRE: NOT ENOUGH HOUSES SO RENTAL PRICES SKYROCKET

Some cite big hike but others insist the biggest issue is availability.

People who lost their homes in the Knysna fires are battling to find replacement accommodation and there are concerns that rents are spiking due to increased demand.

Although official statistics have still not been released, many whose homes were damaged or destroyed were tenants so they did not have insurance. But even those who did have some cover said the payouts are inadequate to rent a similar replacement home.

The general feeling is that rentals are now unaffordable. And many people have expressed shock at what they perceive to be a massive post-fire increase in rental prices.

Tenants only benefit from content insurance, as the building insurance vests in the property owner. Many property owners’ policies state that accommodation will be provided by the insurance company until the house can be reoccupied. In some instances, this applies for up to two years and to a value not exceeding a quarter of the total insured value of the property. A perception has thus arisen that property owners are upping their rentals to take maximum advantage. But most of the property rental agencies in Knysna deny this. Rentals in Knysna have always been at a premium and the agencies approached are in agreement that there has not been major hike in rental prices. What they have noticed, according to Hans Viljoen of Remax, is that available rental properties have increased, as many “swallows” have instructed agents to let their houses to those in need. But Viljoen said the prices are in line with those before the fire.

The Knysna-Plett Herald compared rental property listings in Knysna before and after the fire and it would appear that, in the main, there has not been a radical increase in rental prices.

However, there may be individual property owners trying to maximise the money they make, but the good news is that the acrossthe-board price spike that was anticipated hasn’t materialised.

“Prices are more or less the same, but the availability and finding a child and pet-friendly home has become a bigger issue,” said one resident.

He said this was his family’s most pressing problem.

“We have received awesome donations since, and have almost replaced all the items we need most. The issue remains finding a suitable home.” – Caxton News Service

The issue remains finding a suitable home.

Picture: Gallo Images NOT ENOUGH HOUSING STOCK. Many houses in the Knysna Heights area were destroyed in sweeping fires on June 9, leaving several residents without homes.