“It is quite evident that the ramifications of the bill have not been thought through nor have the likely effects on the South African consumer been considered,” comments Seeff.

“South Africa traditionally has a high ratio of renters, especially in recent years as access to credit remains restricted and most people are forced to rent,” continues Seeff. “Given the high demand for rental properties, rentals in many residential areas are already high. While the intention of the bill is to penalise those in the privileged position of owning an additional property, it is likely to have the opposite effect with the already cash-strapped consumer having to foot the additional costs.”

Seeff also believed that the proposed bill is likely to also severely impact the already sluggish property sales as he says: “investors will think twice before acquiring additional properties, especially at this time of low buyer confidence. The acquisition of holiday or retirement homes in for example coastal and inland areas will also be negatively impacted should this bill be promulgated.”

The effect of the new bill would be that owners of secondary properties would have to pay commercial rates – which are more.