Effects of Property Rights for Low-Income Housing in South Africa

Purpose: The low-income housing sector plays an essential role in poverty alleviation, with the Department of Housing (DOH) being the driver of the sector. However, the DOH has been facing a massive backlog, which limits the issuance of property rights to South African citizens. Thus, the aim of the paper was to investigate the effects of property rights for low-income housing in South Africa. Design/Methodology/Approach: The research was carried out using the quantitative approach. Primary data was gathered through a well-structured questionnaire which was distributed to Reconstruction Development Programme (RDP) occupants and the DOH personnel in Gauteng. A total of 104 responses were received from participants through simple random sampling from the online distributed close-ended questionnaires. The data gathered were analysed using descriptive statistics through the use of the Statistical Package for Social Science (SPSS) Version 26. The software provided the mean item score which was used to rank the variables in each research objective, and the Cronbach alpha, which tested the reliability of the questionnaire. The results of the analysed data were presented in the form of figures, graphs, and tables. Findings: The study disclosed the major effects of property rights to be poverty reduction, poor quality of houses, and the enhancement of neighbouring property values. Research Limitations/Implications: The study focused on the effects of property rights on low-income housing in South Africa. Practical Implication: The research findings prove that the issuance of property rights to ordinary citizens can alleviate poverty even though there is still a need for a significant improvement in the design of the houses to ensure the quality of housing, which can be achieved through digitalization. Adoption of the various measures such as appropriate structures allowing effective whistleblowing, policy, and legislative reforms will reduce the occurrence of challenges of property rights for low-income housing, thereby allowing an increase in the provision of low-income housing in South Africa. This will result in an increase in property rights for ordinary citizens in South Africa. Social Implication: It is therefore recommended that government must provide a clear and appropriate legal framework for the low-income housing sector through the amendment of the Housing Act to have a section detailing how beneficiaries should enjoy the fruits of their property rights with no restrictions imposed.