According to the SA Institute of Race Relations’ latest statistics nearly 14 million households do not earn enough to qualify for bank home loans.
Kerwin Lebone from the institutes research department has said that “the income figures demonstrate the pressure on the state's housing delivery programmes with 60 percent of all households eligible for government-subsidised housing.” Many of these households have been waiting for years for the government houses to be constructed.
“In 2009, only 12% of households earned enough to qualify for an unassisted bank mortgage,” read a statement from the SAIRR (SA Institute of Race Relations)
Only 700,000 households qualified for bank finance in the affordable housing sector.
These figures emanate from a 2011 report by the Financial and Fiscal Commission.
In 2009, at least 60 percent of households earned R3500 or less a month and qualified for a state housing grant.
Seven percent of households earned between R7000 and R10,500, which did not allow them to qualify for government housing programmes and not enough to get a bank mortgage.
It said the number of informal backyard dwellings rose by 83 percent between 1996 and 2010.
"People who were on the waiting list of government housing programmes, and the majority of those that do not qualify for such programmes, often migrated to backyard dwellings that offered cheaper rentals," the SAIRR said.
These statistics are a reflection on what is happening around the country’s big capitals, where informal settlements rise up from the dirt in a matter of days. While those earning enough to rent do not have the opportunity to buy a house because they cannot obtain mortgages from the banks.