Cape Town homeowners urged to look beyond city’s claims of municipal rates relief

Cape Town homeowners are urged to look beyond the city’s claims of municipal rates relief under the new budget.

This, after the city promised most households would either pay less or see no change in tariffs.

The city said around 60% of properties will benefit from a revised rates calculation, aimed at softening the blow of rising property valuations.

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However, civil society activists argue that rising property valuations mean homeowners will collectively fork out nearly R1 billion more in rates in 2026.

Municipal law expert from Stellenbosch University, Professor Zwelinzima Ndevu, said affordability must be the guiding principle, especially as household costs continue to climb.

Ndevu said the city has a duty to ensure rates are affordable.

“They ensure that they do not collect revenue or charge in such a way that would make their citizens struggle and not be able to pay for the services.”

Activist Natasha Gertze said the bigger concern lies in fixed tariffs, which apply equally to wealthy and lower-income homes, regardless of actual usage.

Gertze warned many lower-income homes lose access to rates relief the moment their property value crosses certain thresholds.

“With the valuation, if your property is valued at R500,000, you are paying for water, you’re paying for electricity on the domestic tariff, which means you don’t get free units, you don’t get free water.”

The city said lower- and middle-income households still benefit, arguing homes with smaller market values continue to pay less overall.