Business
Student landlords stuck in uncertainty as NSFAS delays 2026 accommodation rates
As universities across South Africa reopen their doors for the new academic year, student residences are filling up fast. But behind the scenes, a growing sense of anxiety is taking hold among private student landlords who still do not know what they will be paid for housing NSFAS-funded students in 2026.
The uncertainty centres on accommodation rates, payment responsibilities, and whether students qualify for metro or non-metro allowances. With leases needing to be signed and rooms allocated, many landlords say they are being asked to operate in the dark once again.
Why landlords are sounding the alarm
The Private Student Housing Association has formally raised concerns about the lack of clarity from the National Student Financial Aid Scheme, warning that the situation is becoming financially unsustainable for accommodation providers.
According to PSHA chief executive Kagisho Mamabolo, landlords are struggling to finalise leases or plan operating costs without confirmed rental rates or certainty around who will manage payments. This affects everything from staffing and maintenance to compliance and financing.
Adding to the pressure, PSHA says some students living in metropolitan areas are still receiving non-metro accommodation allowances. That mismatch, landlords argue, leaves them absorbing shortfalls that should not exist in the first place.
The levy that refuses to disappear
Another sticking point is the ongoing 5 percent levy on accommodation allowances. While NSFAS has previously indicated it plans to pay landlords directly in 2026, PSHA says the levy continues to be deducted through intermediary service providers.
From the landlords’ perspective, this feels like a contradiction. If service providers are required to support NSFAS administration, PSHA argues that NSFAS should carry those costs directly instead of passing them on through unclear deductions that ultimately affect landlords and student housing viability.
NSFAS responds, but questions remain
NSFAS has confirmed that 2026 private accommodation rates are still under review and will only be announced once national budget allocations are finalised. The review process takes into account inflation, student progression, first-time enrolments, and overall funding availability.
For now, NSFAS says a transitional payment arrangement is in place. Institutions that fall under its accommodation project will have payments managed directly by NSFAS, while other universities will continue handling payments themselves. On the issue of metro and non-metro allowances, NSFAS says it is not aware of misapplications and has invited PSHA to submit specific cases for investigation.
As for the controversial levy, NSFAS maintains that no decision has yet been announced and that any future changes will be communicated transparently.
A familiar story in South African higher education
For many in the student housing sector, this uncertainty feels uncomfortably familiar. Delays and late announcements have long been a feature of the NSFAS ecosystem, often leaving students, landlords, and universities scrambling to adjust after the fact.
On social media and in industry circles, frustration is growing. Landlords warn that continued uncertainty could push smaller providers out of the market, ultimately reducing accommodation options for students who rely on NSFAS to study away from home.
PSHA has called for confirmed 2026 rates, clear allowance categories, an end to the levy, and meaningful engagement on a multi-year rental framework. Without that, the fear is that student housing stability could once again become collateral damage in an already stretched higher education system.
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Source: IOL
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