Utility Tarrif Hikes

The National Energy Regulator (NERSA) gave Eskom the go-ahead in February to raise its tariffs by 25% from 1 April, which in most municipalities is being passed on to electricity consumers. Add to this the new water tariff, and the monthly burden adds considerably to the consumers household bills.

With the new Eskom electricity, and other municipal utility tariffs eating into the disposable incomes of tenants, residential landlords may have to reconsider any further rental increases if they want to keep their tenants.

The banks take household expenditure into account when evaluating affordability, so the demand for rental accommodation is likely to sway in the landlords favour as it becomes more difficult for many people to qualify for home loans.