Abstract
The rapid growth in housing demand represents a mammoth task for both the present and
future housing policy in South Africa. Local Government in an effort to address this challenge
has placed a high premium to inner-city regeneration. An important part of this regeneration is
the development of social housing. Since inception the social housing institutions have been
struggling to meet their mandate due to end-user default in rental payment and these calls for
investigation. The problem of default in rental payment by residents of social housing
institutions has reached a crisis point in addressing housing challenge facing the country. Some
of the social housing institutions have reached a point that this tendency might force them to
close down. Hence, this investigation intends to find out the underlying reasons behind the
inability of the end-users in meeting the set obligation in relation to rental payment. This
investigation will be based on a literature review. This finding will be contextualise in
Johannesburg as a case study because this happen to be one of the municipalities with both a
high rate of migration and attendant housing shortage. Affordability, confusion in understanding
the terms and conditions of the rent/lease and culture of entitlement and lack of proper check on
the prospective end-user were found to be one off the reasons why most default in payment.
Added to this is shift in labour practice from permanent to contract appointment as a result
of global economic meltdown and the pandemic of HIV/Aids. This investigation also finds
out that the social housing sector is to some extent bringing a new lease of life to inner-city
regeneration. For rental housing to be sustainable it is basically meant for people who have
regular income and who can afford to pay as they are based on cost recovery. There is need for
training and proper end-user awareness of the rent/lease terms and conditions so as to create
understanding and avoid default in payment.