M.Comm. / The purpose of this dissertation is to assess the progress that has been made in the provision of housing finance to low-income earners. In 1994, housing affordability was constrained, as around 86% of households earned below R3 500. The focus, therefore, is on the role played by both government and the four major banks in broadening access to housing finance for these households and also those who earn less than R7 500. Frameworks that brought about certain initiatives aimed at addressing this problem are explored. On the side of government, the housing subsidy scheme and the role played by the government housing finance institutions (i.e. the National Housing Finance Corporation and the Rural Housing Loan Fund) are explored. On the banking sector side, the provisioning of housing finance prior to and after the implementation of the Financial Sector Charter (FSC) in 2004 is investigated. The dissertation concludes by looking the challenges that exist in the low-cost housing finance environment. The paper notes that, although some considerable progress has been made in the broadening of access to housing finance, there is a huge gap between the number of subsidies approved and the number of households that have benefited from the government subsidy scheme, possibly resulting from, among other things, capacity constraints at local government level. In respect of the banking sector, data analysed shows that bank involvement in the low-income market was very minimal before the implementation of the FSC. However, as much as some progress has been made, there are some serious challenges in this market that could have possibly prevented the role players from extending this access to the rest of the target group.