71point4 > Projects > Housing > The Transaction Support Centre

The Transaction Support Centre

The TSC is a pilot action-learning research initiative established by the Centre for Affordable Housing Finance in Africa (CAHF) and 71point4 to support formal property market transactions in low-income markets. The physical advice office is based in the Desmond Tutu Sport & Recreation Centre in Makhaza, Khayelitsha and has been operational since July 2018. Since then the TSC has received over 300 cases from walk-in clients with various housing-related problems. You can read more about our case load here.

The TSC works at two-levels: at the micro level the TSC works to facilitate formal property market transactions by offering hands-on assistance and advice to individuals, while at the macro level the TSC works to feed the lessons learnt into the policy and financial sector.

Why the need for a Transaction Support Centre?

Affordable properties represent a substantial portion of the residential property market in South Africa. As at the end of 2017, of the 6.3 million formal residential properties visible on the deeds registry in South Africa almost 60% were valued at less than R600 000. Of those, 35% were considered ‘entry level’ properties valued at below R300 000.1 Most of these properties were built by the government as part of its RDP or subsidy housing programme. In spite of the very significant title deed backlog, CAHF estimates that approximately 1.8 million properties on the deeds registry (or 30% of all registered properties in South Africa) are RDP properties. Given that housing is the most significant asset on the household balance sheet for property-owning low income urban households, the affordable housing market offers significant wealth creating potential for beneficiary households. However, in this market households’ ability to realise value from their housing assets is significantly hampered by a number of challenges. These include:

  • Access to clean, undisputed title deeds (largely driven by Government’s backlog of title deed transfers and the proliferation of informal sales in this market)
  • The length of time to transact formally (compared to the alternative, an informal sale transaction, which is immediate)
  • The cost of formal sales processes relative to the property value
  • Limited access to mortgage finance

The extent to which these forces undermine the performance of South Africa’s affordable housing market provided the impetus to form the Transaction Support Centre (TSC).

1. CAHF (2018). Investment & economic empowerment opportunities in South Africa’s affordable housing sector. http://housingfinanceafrica.org/app/uploads/Rust_SA-housing-market-opportunity_14092018

The TSC’s work can be classified into three broad areas

Supporting Transactions

Read our latest client case studies here

Enabling administrative processes 

Read our case study on the problem with informal cash sales here.

Education and awareness building

Read more about the TSC Community Day

TSC consumer education material

Read our latest case studies and more

September 29, 2014. Flooding took place at low lying parts of Nelson Mandela Bay with parts of Missionvale and Kleinskool flooding. Although residents from missionvale has started moving into RDP houses many of them still has to walk up to a km to fetch water like Yonele Khula 11. Pic: Eugene Coetzee. ©The Herald
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Nasty truth behind the RDP housing market

In the news

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The time it takes to buy a house in Khayelitsha

Case study

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Lost in administration – Patricia* and the idle FLISP

Case study

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Lessons from the Transaction Support Centre

Presentation

Key in door
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Focusing on affordable resale can transform the mortgage market

Blog

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Informal cash sales in Khayelitsha

Case study

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TSC Community Day

Blog

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TSC awarded Cities Alliance 2019 Innovation Programme funding

Blog

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Winding up an estate

Case study

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Entitled and untitled

Case study

For more information on the TSC or to find out how you can get involved in the initiative, contact Illana (illana@71point4.com) or Jessica (jess@71point4.com)