NHFC marks 30 years with R13bn in housing finance and 800 000 households reached

More than R13 billion in housing finance has been facilitated by the National Housing Finance Corporation, and more than 800 000 households have been helped into housing opportunities, Human Settlements Minister Thembi Simelane said on Friday.

Delivering the keynote address at the corporation’s 30th anniversary summit in Boksburg, Gauteng, Simelane set out three priorities for its next phase: innovation in housing finance, integrated human settlements, and deeper partnerships. The anniversary falls in the same year as the 30th anniversary of the Constitution, whose Section 26 recognises the right to adequate housing and requires the state to take reasonable measures, within its available resources, to achieve its progressive realisation.

The instrument, and who answers for it

The NHFC is the state’s housing finance arm, and the Minister named the transition towards a Human Settlements Development Bank as the next step for the institution. She said the move presents an opportunity for greater autonomy and scale, and that it must be completed efficiently and leave the new institution able to operate with the agility the housing market requires.

On the second priority, Simelane said government must move beyond the delivery of individual houses.

We must move beyond the delivery of individual houses toward integrated and sustainable human settlements that connect communities to essential services, economic opportunities, and secure tenure.

That approach, she said, must include schools, clinics, roads and recreational spaces alongside housing. On the third priority, she said the corporation’s record over three decades was built with financial institutions, developers, all spheres of government and communities, and that the partnership must deepen because government cannot address the housing challenge alone.

The numbers behind the delivery

Since 2019, more than 32 000 subsidy approvals have been made through the First Home Finance programme, with close to R2 billion disbursed and R10.9 billion in private sector investment leveraged. The programme serves the gap market, households earning between R3 501 and R22 000 a month who earn too much to qualify for a fully subsidised house but too little to secure traditional mortgage finance. Simelane said it has been expanded to rural areas, with traditional leaders supporting its implementation and driving local development initiatives.

She cautioned against reading the totals as administration alone. “These are not just figures. They represent families who have a place to call home. They represent children growing up in stable environments. They represent the restoration of dignity,” she said.

The backlog, and the question before the summit

Against that record, the Minister said the country still faces a significant housing challenge, with the backlog estimated at approximately 2.6 million people in need of housing. Rapid urbanisation and economic pressures continue to place enormous pressure on the cities.

Demand for affordable housing continues to outstrip supply. Economic pressures make it harder for households to enter the property market. The question before us is not whether progress has been made. The question is, how do we accelerate that progress?

Simelane commended the corporation’s anniversary initiatives, including its Scholarship Fund, 30 Stories campaign and digital archive, which she said show a commitment to preserving its legacy while investing in the next generation of housing and built-environment professionals. She thanked the NHFC board, management and staff, as well as private-sector and civil-society partners, for their contribution to expanding access to housing finance.

“Government cannot do it alone. We remain committed to the translation of Section 26(1) and Section 26(2) of the Constitution, especially the promise of adequate housing for all, to make it a reality. Together, let us continue building a nation, one home at a time,” she said.

The summit was held in Boksburg on Friday. The next dated step named in the Minister’s address is the completion of the NHFC’s transition to a Human Settlements Development Bank, which she said must be carried out efficiently and leave the institution equipped for the market it serves.

Source: SAnews (South African Government News Agency), NHFC urged to drive innovation in housing finance, https://www.sanews.gov.za/south-africa/nhfc-urged-drive-innovation-housing-finance