Parliament, Wednesday, 19 September 2018 – The Portfolio Committee on Human Settlements welcomed the stakeholder consensus on the need for transformation in the property industry.
Professors from the universities of Nelson Mandela and Fort Hare told the committee that amendments to the Property Practitioners Bill should address human settlements in its entirety and not necessarily residential properties only. It should thus also include school infrastructure, clinics, hospitals etc. They also advised that that the bill stipulate clear targets and time limits to assess and monitor the level of transformation since the bill fails to stipulate exactly how this transformation is going to take shape.
The Chairperson of the committee, Ms Nocawe Mafu, said young people are worst affected by the unemployment rate in the country and enquired how the sector could be made more attractive to these young people. She further said “the Bill itself is about transformation and ensuring that the lower parts of our communities have access to the sector” and enquired from the South African Council for the Property Valuers Profession (SACPVP) how they go about supporting people from previously disadvantaged backgrounds.
Numerous stakeholders felt that the Bill should make provision to incentivise companies that push the transformation agenda, and to sanction those that work against it. The committee was told that banks do not allow for property valuation reports to be given to clients, and consumers should be advised to appoint their own external property valuators.
A number of stakeholders told the committee that the industry is monopolised, that major banks should be regulated because they provide business only to major real estate agencies. People on the ground should also be trained in the areas of real estate since it is not always about the qualifications that one has, but also the confidence and attitude that is needed to succeed in this vast industry.
The committee will this week continue engaging stakeholders on the Property Practitioners Bill [B 21—2018] which seeks to provide for the repeal of the Estate Agency Affairs Act of 1976, and make provision for the continuation of the Estate Agency Affairs Board, as the Property Practitioners Regulatory Authority.
The Act is outdated (40 years old) and does not assist government to achieve the outcome of improving the functioning of the property market, which includes regulating the buying, selling and renting of land and buildings. The Act in its current form does not assist in meeting the needs of the South African communities and also does not accommodate the dynamic needs of the real estate industry.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON HUMAN SETTLEMENTS, MS NOCAWE MAFU.
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