Student accomodation providers owed millions

Added: 2026-05-27

[00:00:00]All right, well following the decision to place NSFAS under administration, concerns are growing over the impact on student accommodation providers. Now while the move has been welcomed as a step towards some sort of accountability, landlords say however that they're still owed nearly a billion rand by the scheme. And Julian King has actually been telling me that it's possibly money from 2024, 25, and even parts of 2026.

[00:00:25]Let's get into that conversation. The chairperson of the student accommodation providers of South Africa, that's Julian King joining us in studio. Julian, thank you so much for the time. Really appreciate it and I think it's an important one to have the other side. We keep trying to get government on this conversation, but it feels as though it's words and words and words and no action and the protest that you see that the the the students get into these, you know, student accommodation providers themselves get into as well. Can we talk about it what exactly is the issue? What what has actually happened? I mean, NSFAS now under administration. Yeah. Well, I think at at NSFAS, I think nobody knows exactly what is the issue, but from the standpoint of accommodation providers, I think one thing is clear that student accommodation in this country is in crisis and we continue as the leadership of accommodation providers throughout the country to really initiate conversations with NSFAS with the institutions and DHE, but clearly to date we're still having persistent issues around pertinent issues for student accommodation providers. So, at this stage, it's going to be interesting how and we know we've written to the minister to say lend us a helping hand to try and unpack the various challenges that student accommodation providers are facing.

[00:01:52]>> What is the actual issue? What is the problem here? Is it just the administration of who gets what portion, who does what, or is it just the fact that there actually is no money for accommodation providers? Well, I think the budget for student accommodation providers definitely seems like it is dispersed to NSFAS. I think internally how the disbursements of payments then goes creates the challenge. And I think sitting here today, it's amazing how an entity of over 30 years is not able to resolve an historic rental payment issue. As I sit here today, we are still not we still not have clarity with regards to where is the outstanding rental payments due for 2024, 2025, and parts of 2026. And today we do not have [clears throat] the answers.

[00:02:45]And so even when you're trying to get this communication then even from the minister, from the ministry overall, you're getting nothing. We've we've we've written to the minister on a few occasions. No response at all from the minister. NSFAS from time to time does engage with us. But you know, we we had a space where engagement doesn't um bring the confidence back into the sector. Accommodation providers still are not paid. They've got serious challenges that continue to plague the sector. And without a proper structure, and you will see it's it's it's almost monthly and every year that management inside NSFAS changes, and we start the process all over again. And so here is it under administration, and once again, we are still here to meet a new administrator and start the conversation around a student accommodation crisis from the start.

[00:03:39]>> Yeah, I mean we we are actually going to make calls as well to hopefully speak to Professor Shingane Mathebula who is now the administrator of of NSFAS as well.

[00:03:49]And just I I if we take about talk about that financial strain, it then puts students under strain, too. Let's just talk about what that communication, that conversation has been like with students who have continued to complain to say, "Well, you're kicking us out or you're not even giving us accommodation, and yet we're supposed to be under uh NSFAS." So, you know, I said that, you know, the model of of student accommodation by NSFAS, when it was introduced to us in 2023, it sounded like an exceptional move to, you know, stabilize the student accommodation sector.

[00:04:22]But hold and behold, when the model started taking off, from day one, we've been dealing with challenges. I mean, as soon as the model took off, we were under administration at NSFAS, and accommodation providers started feeling the pinch from day one.

[00:04:39]You're absolutely correct. Accommodation providers, our members in SABSA, continued to, you know, try their best to keep the lights on, to keep services running, but without a sustainable payment solution across the country to date, and you know, the media is is running stories on this. Accommodation providers, doors are closing. Security companies are walking off site. The safety, health of students are being at placed at risk. But if you are not receiving rental payments for 60 to 90 days at a time, what are accommodation providers supposed to do? And I think this is the reason why we've reached out to the minister to say, "Listen, our mandate as student accommodation providers is clear. We want to provide fit-for-purpose, location-considerate, safe, and affordable student accommodation. But to do that, we need Department of Higher Education and Training to come on board. I've been calling for a stakeholder engagement meeting for months now, where I say, "Bring DHET, bring NSFAS, bring the institutions from both the TVET and the university sector. Let's have a conversation around stabilizing student accommodation and today that conversation has not yet happened. Still to no avail and that that I I think is the worry because then as you said it leads it leads students to go into unsafe, unprotected and in some cases possibly dilapidated buildings with no security as well and they're at grave risk. They're the ones we should actually be worried about here. And And you are absolutely correct and this is the reason why. You know, I've been in the student accommodation space for over 15 years now.

[00:06:21]And when I'm providing insight to NSFAS to institutions, I'm saying guys the core function of NSFAS is to protect the student and we must not run away from that mandate. But while the core function is to ensure that we we we we honor our service services to student accommodation, we can never run away from the fact that without a proper management system um accommodation providers are on the blink of collapse. I'll give you an example.

[00:06:51]Um every day our office um in KwaZulu-Natal is inundated by calls by both accommodation providers and students, you know, um raising various issues. You know, yesterday on my way to Johannesburg I I find members three four members saying to me King, I've finally taken the decision rather to sell up.

[00:07:10]Now >> Wow. uh transformation in the sector small and medium businesses were supposed to have a return on investment.

[00:07:17]That's why we invested. Um the media tells us that there's a huge shortfall for student accommodation. The private sector stepped up to the game and we are saying we can provide the shortfall but we will never provide the shortfall when investor confidence is at an all-time low. Yeah and and with regard to those private investors as well, how much of a role are they playing in this?

[00:07:37]And not in a negative sense but in terms of trying to find a solution. Is there one being had? Can they actually fill up that gap completely? 100%.

[00:07:47]We we've got in SA so we've got over 1,000 accommodation providers and counting.

[00:07:52]Every day we're signing up new accommodation providers and the conversation is real. Investment investors are out there saying we can respond to the shortfall. But at this stage it would be reckless to pump millions and if not billions into a sector that currently cannot assure sustainability.

[00:08:13]Wow.

[00:08:14]How do we get this right then? I mean, what is the long-term reform process?

[00:08:17]Because clearly you're not being heard when it comes to having a conversation with regards to this. The money isn't being funneled correctly to yourselves missing for as you said 2 and 1/2 years on that basis effectively. Students are the ones suffering. The private sector can play a role but they can't do so when investor confidence index is actually too low.

[00:08:35]It just feels like there's negativity all around here. How do we get this right?

[00:08:39]So, you know, yesterday I had a conversation with some investors in KZN.

[00:08:44]And I said to them, you know, we we are anticipating to meet with the student accommodation unit at NSFAS on on Thursday.

[00:08:53]And you know, I was saying to them that one of my wishes is if NSFAS can just listen to me. I said it to them when the student accommodation pilot project started in 2023. I said to them, "Guys, they are exceptional individuals in this country that have been in student accommodation for years. They've understood the model um by trial and error and it's about time that you guys get your skill set right.

[00:09:19]Currently, it's never going to work when every two to three months management is changing, administration is changing and you're trying to then create stability.

[00:09:28]It's not going to work. And so part of the solution is to say, "Let us headhunt key individuals who've got the skill set in student accommodation." Now we've had universities running student accommodation for years. There's been people there that are 20, 30 years in the sector. Those people need to be brought in to provide key insight to build a student accommodation framework.

[00:09:50]I said it to them, without a proper framework, we are at the blink of a collapse. Right now, payments to accommodation providers have not gone off. It was supposed to come off on the 25th. And students are about to enter examinations. Imagine the catastrophe if today members decided that, well, we've tried, we've waited, we've been patient for 2 to 3 years. Still no outstanding payments, still no payments for this year. And the eviction of student accommodation is what we are trying to prevent.

[00:10:21]>> Could that Could that be Could that happen? Could we see a mass evictions en masse at this stage because of something like this?

[00:10:27]>> It's It's on the cards. And daily, and I think NSFAS should appreciate it. Daily, I'm engaged in Teams meeting. You know, I I think I'm working more for SASCO than my private business because daily I'm trying to prevent a provincial or a national shutdown of student accommodation. And this is the reason.

[00:10:44]We We We We We extend an invite to the minister.

[00:10:47]We are saying, be in touch with the reality. Accommodation providers need a voice, and we are the voice of SASCO.

[00:10:55]But they also need an ear. And SASCO has continuously, and we will continue to have the conversations around strategic partnerships with the Department of Education and Training. But here's the thing. Unless a stakeholder engagement meeting takes place, we need everyone around the sector to have a conversation. I mean, right now, without rental payments, you know, our members are telling us NSFAS is around the country inspecting student accommodation. Imagine being inspected when you've got 90-plus days not receiving rental. What are you inspecting? And what are you What is your intention when I cannot pay for security services, I cannot pay for cleaning >> someone going to meet the expectations of the inspection?

[00:11:36]>> because I've not paid. And so you are on around the country inspecting, what are you inspecting? So we just feel that without a proper structure to protect us >> Yeah.

[00:11:46]things are going to get bad.

[00:11:47]>> Is the National Student Financial Aid Scheme as it as it exists as it as it as it sits, is it the right way to be handling this sort of thing? Should we should we scrap the entire thing entirely, make it a part of a government department inside the higher education department? And I mean I know I know of course of course it's overseen by president and as far as completely goes away and government then deals directly with accommodation. Do you think that would be a better basis or is that going to obfuscate things even further? Well well right now, you know, accommodation providers don't really trust anyone right now. But here's the thing. Um in my engagements with NSFAS, I've always maintained that the entity has been around long enough to be able to put a turnaround strategy in place, yeah? And it's important then an entity of 30 plus years I believe that there's people in NSFAS that have really understood how it's been built over the years and with proper structure but we can never create that structure or that framework in student accommodation. You know, I always say is that with student accommodation it's it the academic student accommodation residence life at learning is an extension of the academic period. The moment you are disrupted as a student with accommodation, it's going to affect your studies.

[00:13:07]>> Yeah. And that conversation must be is a reality in South Africa. And this is the reason why we cannot stress enough the importance for the minister to come down and meet with us because we want to share real insights to say minister accommodation providers in the country have got the real challenges. And with businesses closing daily, we've got a responsibility to protect. The minister continuously talks about private partnerships. That will never happen if we do not have a structured system in this country. Well, we're willing to host a conversation right here.

[00:13:39]Um, we'll bring Julian back in, minister, if you're willing to join us, Buti Manamela. Uh, minister, if you're willing to join us right here in the studio, uh, we can have the administrator, uh, as a Professor Kanyane Mathebula as well to join us on future plans and how exactly we deal with NSFAS. We can have that colloquial conversation right here so that assurances are made and and clarity is then certainly given to students who will certainly be needing it. We cannot say that students are needing to go out and get an education when their basic right then, which is that uh, level of accommodation isn't looked after. An important conversation. Julian King, thank you so much for joining us in studio. Really appreciated the chair for the student accommodation providers of South Africa.