Waiting for an RDP house? Treasury cut R7.8bn. Here's what it means

Government is taking R7.8 billion out of the grant that pays for free RDP-style houses. Finance Minister Enoch Godongwana announced the cut in the Medium-Term Budget Policy Statement, saying "programme inefficiencies and rent seeking" mean less of the money is going into building houses (MTBPS speech).

If you're on a housing list, the short version is this: the grant is not being scrapped, but there will be less money for new subsidised houses over the next three years while government designs a new way of delivering housing.

What exactly did Treasury cut?

The R7.8 billion comes from the human settlements development grant over the 2027 medium-term period, which covers the next three financial years (SAnews). This is the grant provinces use to build fully subsidised houses.

Treasury's policy statement says poor planning and implementation have weakened delivery and that the current model "is not well suited to current needs". It describes the move as pausing the grant to free up the R7.8 billion "while a more responsive model is designed", with the White Paper for Human Settlements meant to reset how housing is delivered (MTBPS document).

The cut is part of R38.1 billion in savings Treasury found across government. The rest includes R13 billion from reducing social grant fraud and R11.7 billion from low-priority programmes in national departments (SAnews).

How much has the housing budget shrunk?

Even before this cut, the Department of Human Settlements' budget was set to fall from R34.9 billion in 2025/26 to R27.2 billion in 2028/29, mainly because bulk infrastructure money for metros moved to a new Treasury grant (Treasury, Vote 33 Human Settlements).

The mid-year adjusted budget now gives the department R26.4 billion for 2026/27, about 24% less than the R34.9 billion it had at the same point last year, according to The South African's reading of the adjusted estimates (The South African).

In February's budget, the department still planned 160 572 fully subsidised houses over the three years, funded by R41.4 billion in provincial allocations from the same grant (Treasury, Vote 33). Treasury hasn't said how many of those houses the R7.8 billion cut will remove.

Is the department meeting its targets?

Mostly not. Half-way through 2026/27 it had delivered well under half of most of its annual goals, with affordable rental units the one target already beaten:

Source: department half-year performance figures as reported by The South African.

Separately, R3 billion of the grant was already moved this year to the informal settlements upgrading grant for provinces (Treasury Budget Review, chapter 6).

Will I lose my place on the housing list?

Nothing Treasury has published says registrations are being cancelled. What changes is how much money there is to build houses for the people on it.

It helps to know how the system works. The department says it doesn't keep a single "waiting list". Instead, people register their need on the National Housing Needs Register, and only fill in a subsidy application when an approved project opens in their area. In a parliamentary reply, the department said 3.3 million households or individuals were registered on that database (PMG, question NW868). Fewer funded projects means fewer chances for people on the register to apply.

How do I check my housing status?

Use only the government's own channels. Don't pay anyone who promises to move you up the list or "fast-track" a house.

1. Go to the Housing Subsidy System online at hssonline.gov.za, the link given by the Department of Human Settlements.
2. Enter your 13-digit ID number and search.
3. If you're on the National Housing Needs Register, it shows your position compared with others registered in your area, based on when you registered (PMG).
4. If you've completed a subsidy application, it shows the status, and may show the stand, area and contractor (Mpumalanga Human Settlements guide).

The statuses you might see mean the following, according to Mpumalanga's official guide (Mpumalanga Human Settlements):

If nothing comes up, or you want to query a result, contact your local municipality or the office where you applied (Western Cape housing FAQ). The national department's call centre is 0800 146 873, weekdays from 08:00 to 16:00, and you can report housing fraud and corruption on 0800 701 701 (Department of Human Settlements).

What happens next?

Treasury says the money stays out of the grant until a new delivery model is designed under the Human Settlements White Paper (MTBPS document). Final allocations for each province will be set in the February 2027 budget, which is when you'll see how many subsidised houses are actually funded.