Cape Town ratepayers challenge rising municipal costs amid housing inequality
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Cape Town ratepayers and civic groups are challenging the city's rising property valuations and municipal tariffs, arguing they are worsening affordability despite the municipality's claims of maintaining the lowest cost basket among South Africa's major metros.
Cape Town ratepayers and civic groups say rising property valuations, municipal charges and housing costs are worsening affordability in the city. The Cape Town Collective Ratepayers' Association (CTCRA) chairperson Bas Zuidberg warned that a rates-affordability crisis was rapidly approaching, exacerbated by the Municipal Valuation Roll results.
Zuidberg said anecdotal evidence indicated more residents had been unable to afford their rates bills since charges for the new financial year took effect on 1 July. He noted that total expenditure is set to increase by 20% over the coming three years, with the portion funded by ratepayers rising from 68% to 72%, effectively meaning an average increase of about 10% annually for ratepayers.
The association and AfriForum recently took the City to court to challenge its use of property values to determine fixed municipal service charges. In April, the Western Cape High Court ruled that the City's 2025/26 fixed charges for water, sanitation and citywide cleaning were unlawful and invalid, finding that linking tariffs to property value rather than actual consumption was unconstitutional.
Eerste River resident Donald Lewis, who has owned his property for 10 years, said his rates and taxes had increased to nearly 50% of his bond payment. Mayoral Committee Member for Finance Siseko Mbandezi defended the City's tariff structure, saying it offers the highest rates relief and widest pensioner and indigent benefits among the country's five biggest metros.
The City maintains that its total municipal bill is the lowest across different property values when rates, water, electricity and refuse charges are taken into account, claiming households could save between R264 and R903 a month on an R800,000 home.