Backyard shacks: The relative success of this housing option in Port Elizabeth

Renting Shacks: Tenancy in the informal housing sector of the Gauteng Province, South Africa

“…With this tacit acceptance of an informal settlement, the lack of legal proof of ownership does not hinder informal development and individuals with a high standing in a community or who hold a political position might be able to illicit control of informal land, with the ability to decide on ownership of existing occupants and the ability to evict or remove occupants regardless of the nature of their states in the dwelling (either paid up tenant or owner). This very situation creates an excellent environment for the development of slum lords as influential individuals or those with the backing of a powerful criminal gang can quickly secure a significant proportion of property or land to either rent or sell (Morange, 2002). Although this could lead to a very unstable tenure environment, it is not in the collective slum lord's interest to constantly evict tenants or even informal dwelling owners, it is better to illicit compliance and establish a property portfolio.…”

“…Although this could lead to a very unstable tenure environment, it is not in the collective slum lord's interest to constantly evict tenants or even informal dwelling owners, it is better to illicit compliance and establish a property portfolio. This ability to build informal property portfolios by slum lords can tap into the market of rent seekers who are recent immigrants into the city (Watson, 1994;Gilbert et al, 1997;Crankshaw et al, 2000;Morange, 2002). The state of poor immigrants that arrive in the informal settlements of development cities often leaves them with little capital to construct a dwelling.…”

“…The need for cheap property in many developing cities far outstrips the supply and the rapid rate of informal property development across the global south attest to the need for this housing. Without adequate capital for the development of formal housing, either via government of the formal construction sector (Morange, 2002). Informal housing will be the default housing type for the world urban poor.…”

“…Within this system, the profits are extremely high and capital barriers to entry and expansion are low, although social and political barriers to entry are high (Gilbert et al, 1997). The fact that properties are constructed for rental purposes and not for owner occupier show the not only the individual capital expenditure needed for the growth of informal settlements but equally the dire need for housing in this segment of the market (Morange, 2002).…”

“…Rental properties close to roads, communal taps and toilets should command a premium (Morange, 2002). As with any property market, this premium is dependent on the willingness of the consumer to pay for the convenience of the service.…”