Cape Chamber Backs Industry Call for NHBRC Reform Over "Double Taxation" Concerns

The Cape Chamber of Commerce and Industry has formally petitioned the Minister of Human Settlements to address an operational crisis at the National Home Builders Registration Council (NHBRC), warning that the current regulatory framework is retarding economic growth.

In a direct appeal to Minister Thembi Simelane, the Chamber aligned itself with an earlier detailed submission from the Western Cape Property Development Forum (WCPDF). The joint industry front argues that the NHBRC’s fee structure has evolved into a form of "double taxation," as businesses already pay for municipal building plan approvals that the council duplicates without enhancing consumer protection.

The WCPDF submission also raises several concerns about the NHBRC’s financial priorities based on 2024/25 data. These include:

Revenue vs. Claims: While industry members paid over R677 million in fees, insurance claims paid to consumers amounted to less than 0.7% of total revenue.

Research & Development: Only 0.05% of income was allocated to investigating new construction methods.

Training: Expenditure on industry skills development remains at a mere 1%.

The intervention comes as the sector is faced with multiple external challenges, including organised crime and construction extortion. WCPDF noted that the NHBRC is fundamentally unequipped to tackle undocumented or illegal workmanship—a critical issue underscored by the tragic 2024 George building collapse.

The WCPDF’s submission further labels the council a "costly and inefficient bureaucracy" that fails both the consumer and the builder. Industry leaders are now demanding an independent review of the NHBRC’s financial model and a "levy reduction or suspension" to alleviate soaring project costs.

In aligning itself with the WCPDF submission, the Chamber in its submission said it hoped to encourage NHBRC reform such that the organisation could better fulfil its mandate of ensuring safe and affordable homes.  

Responding to Cape Chamber queries, the NHBRC requested time to formulate a response to some of the WCPDF concerns. 

This story will be updated with the NHBRC response once received.