MAIN IMAGE: Tamlyn Bouwer – acting NHBRC CEO and Miliswa Zihlangu – acting building specialist at the NHBRC
Senior writer
South Africa’s home-building regulator is undergoing its most significant legislative overhaul in nearly three decades, and estate agents are squarely in the frame. The Housing Consumer Protection Act of 2024 expands the National Home Builders Registration Council’s (NHBRC) authority, with direct implications for how agents handle transactions.
The new Act replaces the 1998 Housing Consumers Protection Measures Act and is expected to come into full effect in 2027. It also triggers a name change for the NHBRC, shifting it from a “registration” council to a “regulatory” authority, though the acronym remains unchanged. “The scope of the NHBRC now morphs into an enforcement, regulatory, and warranty authority, which means the regulatory framework will be far more robust and stricter,” said acting CEO Tamlyn Bouwer.
The new legislation comes at a time of heightened scrutiny within the construction and housing sector. Recent building collapses and concerns raised by industry stakeholders have reignited debate around regulatory oversight. Bouwer cautions against reading these events as systemic failure. “The concerns raised externally should really be positioned within the broader context of transition, not decline,” she notes.
Developers and agents
One of the major legislative changes is that developers must now register with the NHBRC, closing a longstanding gap in which accountability previously rested solely with the registered builder.
Agents should also note that the Act’s expanded scope includes alterations and additions to existing properties. These will now need to be registered with the NHBRC, which has stronger inspection powers and increased penalties for non-compliance. Effectively, agents may be considered watchdogs in this scenario, tasked with checking the compliance status of properties to protect buyers.
Among the other legislative changes is an extended warranty timeline. Coverage will, in future, commence at the construction stage rather than occupation, with certain elements extending from one year to two.
Inspections
In parallel with regulatory reforms, the NHBRC is strengthening its inspection capabilities by integrating geospatial technologies to improve the detection of unregistered construction and enhance oversight.
“We are developing systems that will enable us to monitor residential areas and identify changes in infrastructure over time,” says Miliswa Zihlangu, the NHBRC’s acting building specialist. “This will allow for more targeted inspections and improved enforcement.”
Consumer-facing
A persistent challenge is limited consumer awareness of NHBRC processes. According to Bouwer, many consumers only engage with the council once issues have already arisen, often discovering too late that their home was not enrolled or their builder is not registered.
The NHBRC is intensifying consumer education and outreach, and industry stakeholders, including agents, are encouraged to view the reforms as mechanisms to enhance the industry’s credibility rather than as punitive measures.
What this means in practice:
- Alterations and additions to existing properties must now be registered with the NHBRC
- When acting for buyers, you may be expected to verify the compliance status of a property, including any alterations
- Developers must now register with the NHBRC; previously, only builders were required to do so
- Warranty coverage will begin at the construction stage, not occupation, with some elements extended from one to two years
- The NHBRC has increased inspection powers and stiffer penalties for non-compliance
- The Act comes into full effect in 2027; regulations are still being finalised
