Tenants and property professionals need to prepare themselves to fight off a rise in housing scams targeting people on low incomes.
Scammers are messaging people on social media and SMS to tell them they have been approved for a government-subsidised home, or can jump to the front of the queue for subsidised housing – so long as they pay a fee. Earlier this year, the City of Cape Town warned locals that scammers were fraudulently offering subsidised housing in its Maroela housing project, due to be completed in 2025, but similar scams have been uncovered across the country.
The lure of cheap or free housing is strong. Jackie Smith, head of investment firm Buyers Trust, says a shortage of affordable homes is creating opportunities for scammers. “Residents are becoming increasingly distressed in their search for affordable and safe housing, and as a result an increasing percentage of the country’s most economically vulnerable population are falling victim to fake government housing scams,” she explains.
She adds that tenants who may qualify for Breaking New Ground housing (those on a monthly income of R3 500 or less) are particularly vulnerable due to the lack of affordable homes available.
And landlords, especially those renting to people on lower incomes, could also be affected if their tenants hand in their notice thinking they’re about to get a subsidised home.
Rental agents can help to protect tenants by warning them about the risk of scams. Red flags to be aware of include being asked for payment of any kind, unofficial-looking communication, or any suggestion that they can be given easier access to subsidised housing. The only lawful way to qualify for subsidised housing is to join the National Housing Needs Register or a local equivalent.
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