NHBRC reform urgently needed to protect SA housing sector

• Industry demands urgent reform as NHBRC dysfunction increases costs, delays projects, and undermines consumer protection and housing affordability nationwide.
• Financial data raises concerns over reserves growth, minimal claims payouts, and limited spending on training, research, and emerging contractor support.
• Sector calls for national task team to realign NHBRC mandate, eliminate duplication, and restore efficiency and accountability in housing delivery.

Urgent call for reform amid growing industry frustration

The Western Cape Property Development Forum (WCPDF) has formally called on Minister of Human Settlements, Thembisile Simelane, to urgently intervene and reform the National Home Builders Registration Council (NHBRC), warning that systemic dysfunction is placing mounting pressure on the property and construction sector.

In an open letter, now supported by multiple national industry associations, the WCPDF argues that unresolved operational failures are driving up costs, delaying development, and ultimately harming consumers the NHBRC is mandated to protect.

The matter follows commitments by the Minister to investigate NHBRC failures after the tragic George building collapse in 2024, yet industry leaders say meaningful change has not followed.

Industry frustration reaches breaking point

‍Deon van Zyl, Chairperson of the WCPDF, says industry frustration has escalated sharply:

‍

“This situation can no longer remain unresolved. The WCPDF is inundated weekly by members expressing deep frustration across nearly every function of the NHBRC. While failures were publicly acknowledged, little appears to have changed since those announcements.”

‍

The Forum has expanded its appeal beyond Human Settlements, copying multiple national ministries, provincial departments, industry bodies, financial institutions and local government representatives, arguing the crisis now impacts the entire housing delivery ecosystem.

Key concerns raised in the open letter

The WCPDF highlights several critical issues emerging from the NHBRC’s latest financial reporting and operational performance:

Financial performance Questions

• Revenue reportedly reached R2.43 billion, with capital reserves growing to over R11.3 billion.
• Investment income alone exceeded R777 million.
• Industry members contributed nearly R678 million through fees and insurance premiums.

Minimal consumer benefit

• Only R15.7 million appears to have been paid out in insurance claims, less than 1% of revenue.
• Legal costs nearly matched claim payouts, raising concerns about priorities.

Administrative cost structure

• Employee costs reportedly exceed R612 million across approximately 550 staff members.
• Research spending accounted for a negligible portion of revenue despite innovation mandates.
• Training expenditure reached only about 1% of income, despite NHBRC responsibilities to uplift industry skills.

Limited support for emerging contractors

‍Funds allocated to empower emerging contractors remain extremely small compared to reserves, undermining transformation objectives.

Regulatory duplication and delays

‍The Forum argues municipal building control departments already regulate construction safety, meaning NHBRC processes duplicate approvals, add costs, and delay projects without improving protection.

‍

Van Zyl adds: “If municipalities are responsible for enforcing national building regulations, why duplicate those functions at additional cost? And if municipalities cannot enforce them effectively, then that is where reform must start.”

‍

Call for immediate national action

‍The WCPDF is not calling for deregulation, but for a modernised, efficient regulatory framework that protects consumers while supporting housing delivery and economic growth.

The organisation proposes an urgent multi-ministerial task team, including industry bodies, financial institutions and consumer representatives, to:

• Review the NHBRC financial and operational model
• Align regulation with housing delivery objectives
• Remove costly duplication
• Restore accountability and efficiency
• Consider interim levy relief to reduce consumer costs

‍

Van Zyl concludes: “This task team must establish immediate measures to reduce end-cost pressures while developing a long-term restructuring plan that restores trust and accountability.”

‍

Despite growing industry support, the Forum says government responses so far have been limited to automated acknowledgements.

Industry now awaits government response

With housing affordability under pressure and development pipelines constrained, industry leaders warn that delays in reform will continue to increase costs, reduce delivery capacity, and harm consumers.

The sector now waits to see whether government will act decisively to address what many describe as a structural crisis in housing regulation.

The call is clear: reform can no longer wait.

CLICK HERE FOR OPEN LETTER TO GOVERNMENT

‍