National Home Builders’ Registration Council and Another v Xantha Properties 18 (Pty) Ltd

Xantha Properties 18 (Pty) Ltd, a registered home builder, undertook a large development in Wynberg, Cape Town comprising shops and 223 residential apartments. The apartments were constructed solely for rental purposes, not for sale or sectional title ownership. Xantha disputed that it was required under s 14(1) of the Housing Consumers Protection Measures Act 95 of 1998 to enrol the homes with the National Home Builders’ Registration Council (NHBRC) and pay the prescribed enrolment fees, arguing that the Act applied only to homes built for sale to housing consumers. Although Xantha ultimately enrolled the homes and paid fees exceeding R1.5 million under protest, it sought declaratory relief in the Western Cape High Court, which held that s 14(1) did not apply to homes built solely for letting. The NHBRC and the Minister of Human Settlements appealed to the Supreme Court of Appeal.

The appeal was upheld with costs, including the costs of two counsel. The order of the Western Cape High Court was set aside and replaced with an order dismissing Xantha’s application with costs.

This judgment clarifies that the Housing Consumers Protection Measures Act applies equally to homes built for rental and for sale. It confirms a purposive interpretation of consumer-protection legislation in the housing sector and closes a potential regulatory loophole that could have allowed developers of rental housing to evade NHBRC oversight and quality standards.