DA housing policy could be the EFF’s

Given that the Democratic Alliance has been an outspoken, and unashamed, champion of free enterprise and commercial freedom of choice, it is surprising to see the latest housing development policy proposed by the City of Johannesburg, which is run by the DA. The policy is surprising to the extent that it looks like it could have come from the social engineering comrades in either the ANC or the EFF.

In future, according to the policy – which is still open for public comment, although this window closes soon – all future residential developments of more than 10 units will be required to set aside 20% of these units for lower income tenants.

The units so reserved will be available to people with a household income of less than R7 000 and the rent (including levies) for these reserved units will be capped at R2 100 a month or 30% of household income, but excluding the cost of utilities.

The “inclusionary housing” policy units have to have the same appearance as others and must share common spaces and amenities.

The problem, as property experts have warned, is that, unless there are incentives for developers to invest their money in such schemes – and those are difficult to see at the moment – then there could be a withdrawal from the sector by major players, leading in turn to the “unexpected consequences” of a reduction in the number of accommodation units … the opposite of what the policy intends.

Provision of housing for lower income earners should be the responsibility of government – whether national, provincial or municipal – and should not be forced on the private sector. That’s socialism, or nationalisation by stealth. It also possibly contravenes the Constitution, with its guarantees of property rights – yet another issue on which the DA has been vocal.