Standard Bank’s home loan book for the affordable housing market has now hit the R10-billion mark and is expected to double by 2015, says Nicholas Nkosi, the group’s director for affordable housing.
The figure says Standard Bank means the bank has helped place more than 300 000 households into homes since it took the decision five years ago to enter the mortgaged affordable housing market.
Nkosi says by 2015 Standard Bank would have helped more than 600 000 families acquire homes and that although this may seem like a tall order, the bank is firmly on track to achieving that ambitious target.
Already Standard Bank expects to add another R3-billion to its affordable housing loan book this year alone.
The term affordable housing refers to household income of up to R15,733.
“We are very pleased with our growth in providing loans to this segment of the market. Although this milestone might seem like a drop in the ocean considering the extent of the country’s housing challenge, it is more than any other participant in this market can claim to have achieved.
“We believe that there is a lot still to be done in increasing home ownership in South Africa in the affordable housing segment. But we think that as Standard Bank we are heading in the right direction in doing our bit to alleviate the housing back log in this country,” says Nkosi.
“These figures confirm our commitment to getting as many people as possible into homes. Standard Bank has an appropriate and well-managed risk appetite that has enabled us to widen our product offering in the affordable housing market.
“Our experience is also an indication that demand in this segment of the housing market has remained resilient despite weak economic conditions. There is still a huge demand for affordable housing, and we hope that by providing loans we are helping deal with the housing challenges that South Africa faces. We challenge others to do the same as well.”
Nkosi says Standard Bank expects to attract more prospective homebuyers that are seeking to move out of the rental market and become home owners.