New PIE bill could deepen SA’s housing crisis

• Critics warn the 2026 PIE Amendment Bill could make affordable rental housing even harder to access for ordinary South Africans.
• Landmark court rulings expanded PIE protections far beyond vulnerable squatters to include ex-tenants, owners and defaulting occupiers.
• Property investors argue excessive eviction barriers are driving higher rentals, tighter screening and reduced affordable housing supply.

South Africa’s proposed 2026 PIE Amendment Bill is triggering growing concern among property investors, housing providers and legal commentators who believe the legislation could unintentionally worsen the country’s already severe housing affordability crisis.

At the centre of the debate is the Prevention of Illegal Eviction from and Unlawful Occupation of Land Act (PIE), legislation originally introduced to protect vulnerable unlawful occupiers and prevent arbitrary evictions in post-apartheid South Africa.

But according to Renier Kriek MD of Sentinel Homes, the law has gradually evolved far beyond its original purpose.

Kriek argues that PIE was fundamentally designed to regulate the eviction of vulnerable squatters, not to provide extraordinary procedural protections to tenants, mortgagors and former owners whose legal right to occupy property has already expired.

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“The moral purpose of PIE was clear,” says Kriek. “It was meant to replace the harsh apartheid-era approach to illegal squatting with a constitutional framework that respected dignity, housing need and judicial oversight.”

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The court cases that changed everything

‍The turning point came through the landmark legal cases of Ndlovu v Ngcobo; Bekker and Another v Jika, where the Supreme Court of Appeal interpreted the definition of “unlawful occupier” broadly enough to include people who initially occupied property lawfully - including tenants, homeowners and mortgagors, but whose right to remain had later expired.

While the court’s interpretation followed the wording of the Act, Kriek argues the consequences for housing policy have been significant.

Instead of focusing primarily on protecting vulnerable squatters from arbitrary eviction, PIE increasingly became a mechanism delaying the removal of defaulting tenants and unlawful “holders over” from formal housing stock.

Critics argue this has introduced substantial risk into South Africa’s rental and affordable housing markets.

Why the 2026 Amendment Bill matters

‍The proposed 2026 PIE Amendment Bill now seeks to amend aspects of the legislation, but Kriek warns that unless properly revised, it could deepen existing problems instead of solving them.

Importantly, Kriek points to an earlier 2006 Amendment Bill which explicitly clarified that PIE should not apply to tenants, mortgagors or owners whose legal basis for occupation had ended.

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That wording, he argues, should be reinstated in the current 2026 Amendment Bill. “Its memorandum expressly recorded that PIE was never intended to apply to tenants, mortgagors and owners who occupied under prior agreements,” says Kriek.

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The concern from property owners and housing investors is that prolonged and costly eviction processes increase financial risk, particularly within the lower-income rental market.

Access to housing or less housing?

‍One of the most controversial arguments emerging from the debate is that making eviction increasingly difficult may actually reduce access to housing rather than improve it.

Kriek argues that when landlords and investors face excessive legal risk recovering properties after lease defaults or expired occupation rights, the market responds predictably:

• Higher deposits
• Stricter tenant screening
• Higher rentals
• Reduced credit access
• Fewer affordable rental units
• Less investment into low-income housing supply

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“When the law makes it too risky, slow or expensive to recover property, the consequences are predictable,” says Kriek.

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He argues that over the past two decades, the expansion of PIE protections has contributed to a severe affordability crisis at the lower end of the housing market.

In his view, the people most harmed are often not occupiers already inside the formal housing system, but rather those still trying to gain access to it.

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“The people most harmed by poor eviction legislation are often the ordinary South Africans still trying to enter the market,” he says.

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The constitutional debate

‍At the heart of the issue lies Section 26 of the Constitution, which protects the right of access to adequate housing.

Supporters of stronger PIE protections argue the law remains essential in preventing unfair or procedurally abusive evictions in a country still facing deep inequality and housing vulnerability.

But critics argue the law has drifted too far away from its original purpose. Kriek maintains that PIE should continue protecting vulnerable squatters from arbitrary eviction, but should not create extraordinary procedural barriers for unlawful holders-over within the formal housing market.

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“PIE should protect vulnerable squatters from arbitrary or procedurally unfair eviction,” he says. “It should not be used to restrict the housing market itself.”

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The broader concern is that excessive regulation and prolonged eviction timelines are discouraging private capital from entering affordable housing development at precisely the time South Africa needs significantly more housing supply.

A defining housing policy battle

‍The debate around the 2026 PIE Amendment Bill is quickly becoming one of South Africa’s most important housing policy discussions.

For property investors, landlords and affordable housing providers, the issue goes beyond eviction law, it directly impacts investment certainty, housing supply and the long-term viability of affordable rental housing.

For housing activists and vulnerable occupiers, the law remains a critical safeguard against arbitrary displacement and homelessness.

The challenge facing lawmakers is whether South Africa can strike a sustainable balance between protecting vulnerable occupiers and ensuring the housing market remains investable, functional and capable of expanding access to adequate housing.

As public comments on the 2026 PIE Amendment Bill continue, the outcome could significantly reshape the future of South Africa’s rental housing market, investor appetite and broader housing access for years to come.

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