New by-law aims to loosen building regulations for 'micro housing developers'

IOL News

27-06-2025

Mayor Geordin Hill-Lewis
Image: Supplied
The City of Cape Town yesterday passed a major amendment to its Municipal Planning By-law, aimed at unlocking affordable rental housing in informal and lower-income neighbourhoods — a move Mayor Geordin Hill-Lewis described as 'a watershed moment.'
The amendment introduces a new land-use right that allows homeowners in 194 designated communities to legally build affordable rental units on their properties. These areas have seen rapid densification over the past decade, particularly through backyarder dwellings and informal structures.
While the Democratic Alliance (DA), which holds a majority in Council, voted in support of the amendment, it faced opposition from several parties, including the EFF, Al Jama-ah, the National Coloured Congress (NCC), GOOD, Cape Exit, the PAC, and the Freedom Front Plus. The ANC abstained.
In his address to Council, Hill-Lewis stressed the scale of the challenge: '1.2 million of our fellow residents live in informal structures in Cape Town,' he said.
'For those of us who did not grow up in townships, or in a backyard, it is hard to imagine what that means. To live with bitter cold and constant damp in winter, and scorching heat and constant threat of fire in summer.'
Hill-Lewis criticised the national government's free housing programme, known as Breaking New Ground, for failing to meet rising demand. 'Budgets are simply too small, the need too vast. Only a lucky few thousand per year, those waiting the very longest, will get a totally free house, while hundreds of thousands remain on the list. It is important that the public understand that.'
While acknowledging that economic growth and job creation remain the only sustainable long-term solution, Hill-Lewis emphasised the need for action now: 'We also can't wait for a faster growing economy. While that is undoubtedly the only sustainable long term solution, we also need a plan now.'
That plan, he said, is the by-law amendment.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Next
Stay
Close ✕
'The amendments to the Municipal Planning By-law that we will vote on today will do more than any other programme, in any city, to help many more people make the leap from informal housing to dignified, affordable homes.'
The by-law now enables homeowners in selected communities to build rental units legally and safely, with connections to municipal water, sanitation, and electricity. These developments will also need to meet National Building Regulations.
Hill-Lewis acknowledged that micro-developers in townships have already been meeting housing demand at a scale the State cannot match: 'The fact is that micro-developers in lower-income communities are already getting on with meeting housing demand by building many thousands more units every year than the State could ever possibly hope to deliver.'
He described the City's role not as one of obstruction, but of enablement: 'Now we are playing our proper role – not standing in the way, but enabling this form of housing delivery, driven by people's own enterprise, ingenuity, and investment.'
The by-law also includes support measures, such as: Pre-approved building plans and development charge discounts;
A pipeline of 12,000 affordable housing units on well-located land;
South Africa's first Land Discount Guidelines, allowing for discounted city-owned land to be used for social housing;
Utility discounts for approved social housing projects.
While praising the amendment's potential, Hill-Lewis also raised a broader point about transformation in the housing market: 'For so long, property development has been an industry dominated by wealthy established developers who mainly develop in expensive suburbs… but today we are also blowing open the property development industry for thousands of new entrants – new property developers in the townships and in so many other areas.'
He also committed to streamlining approval processes and clamping down on unlawful construction.
'This amendment also empowers communities, by greatly improving public participation in planning applications, and giving the City real teeth for the first time to stop illegal building work.'