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Who is selling RDP houses to foreign nationals? South Africa's growing crisis

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Amid ongoing tensions in many communities over housing access, Human Settlements Minister Thembi Simelane provided clarity on how foreign nationals come to occupy RDP houses — despite the homes being reserved in law for disadvantaged South African citizens.

reported in July that Simelane said complaints continue to rise across provinces, with residents questioning how undocumented or unregistered foreign nationals are living in newly built RDP homes while thousands of South Africans remain on long waiting lists.

How the RDP housing system works

RDP houses are government-subsidised homes delivered under the Reconstruction and Development Programme, introduced in 1994 under former president Nelson Mandela. The homes are meant for low-income South Africans who cannot afford to buy property on the open market.

Successive administrations have prioritised the provision of housing, with millions of subsidised homes and serviced stands allocated over the years. But demand continues to outstrip supply, driving frustration in communities where residents say they have waited years for allocation.

How do foreign nationals end up in RDP houses?

Simelane explained that the law does allow an RDP beneficiary to sell their home — but only after living in it for at least 10 years, and only to another qualifying South African citizen.

“What does our policy say? Our policy says yes, after 10 years of occupation you can sell the house, but you need to sell it to a South African who is part of the policy cover,” Simelane said in an interview with broadcaster Newzroom Afrika.

However, she acknowledged what many residents have long complained about: that some original beneficiaries illegally sell their RDP houses outside formal processes, including to foreign nationals.

“When we go into every imbizo, in every township, we have people complaining, saying: ‘Minister, you say we do not qualify, but how come unregistered and undocumented foreigners are staying in these new houses?’” Simelane said.

She conceded that the situation “looks unfair” and requires urgent intervention.

Illegal sales don’t change official ownership Simelane emphasised that illegal transactions do not alter the official ownership record. In government systems, the RDP house remains registered under the name of the original beneficiary, regardless of who occupies it.

This means that foreign nationals or non-qualifying South Africans who bought such houses informally have no legal claim to the property.

Human Settlements Minister Thembi Simelane

Housing policy overhaul underway

Simelane confirmed that government is drafting a new White Paper on housing, which will examine the entire housing policy, including the sustainability of providing free houses.

“It touches on ownership as well. In which country would you allow a person to sell a house that he or she has not built? That then means you have means to accommodate yourself,” she said.

The minister added that beneficiaries may extend or renovate their RDP houses if their finances allow, provided they follow municipal building regulations.

As pressure mounts on the state to strengthen oversight and protect subsidised housing stock from illegal sales, Simelane said the department is developing tougher enforcement mechanisms.

This story was initially published on in July.

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