This week, revealed that, from April next year, the pace of housing delivery would be virtually doubled and thousands more be made eligible for subsidies, to address a backlog of some 2.4 million homes.

In a revolutionary move to end apartheid urban planning, renovated apartment buildings and new multi-storey complexes will be built near established suburbs, where families from different income groups will live together.

"The primary objective is to build a non-racial society," said Nxumalo.

Nxumalo said the 10-year programme to end shack living, announced this week, would seek to integrate rich and poor communities, without undermining the value or security of property owned by the wealthy.

"Our mandate from President [Thabo] Mbeki when we met him to explain the plan was to demonstrate that we can build successfully integrated non-racial communities," she said.

Citing Sandton in Gauteng as one example, she said apartheid had created an artificial division between generally white affluent areas and generally black poor areas.

"The micro-economy of Sandton needs gardeners, shop assistants and office workers as well as millionaires to keep going and there is no reason why those people should have to travel for hours every day to get to work.

"It is possible, but it will all be within reason because there is no point in negatively affecting the high-income groups, who underpin the economies of these communities," she said.

Nxumalo told the Sunday Times the government would target regenerating inner cities such as Cape Town and Johannesburg, buying apartment blocks for renovation and rental to low-income earners.

The moves follow a series of Housing Department imbizos, as well as research by experts at the Wits School of Architecture and Planning, which has recommended "developing an environment where the poor and the rich share open space".

Wits researcher Dr Marie Huchzermeyer said yesterday that she was optimistic about the policy change, but cautioned that care had to be taken that those with some means did not jump the queue on the poorest communities.

She also said that the RDP model "had worked in terms of numbers, but hasn't been a success in terms of perpetuating the apartheid form of the city, and because of its one-size-fits-all offering to people with very different needs."

Although the department provided no details on new complexes to be built, one of the "higher-density solutions" suggested to government has been the "walk-up" complex, not requiring the added expense of lifts.

Housing minister Lindiwe Sisulu said the cabinet had earlier this month approved the 10-year programme to house the poor and draw low-income communities into the property market.

Property analysts say prices in mainstream areas have surged about 23% in the past year, but township house prices have dropped about 0.5%.

About 1.6 million houses have been built with subsidy support since 1994 - an average of 440 a day - but according to the Idasa monitoring group, the backlog has grown from around 1.5 million in 1994 to 2.4 million today.

Bruce Peach, chief executive of development giant SummerCon, said the plan "could work, if managed properly" - although he conceded that some wealthy homeowners would view the move as a financial and security threat.

"We've seen how it can work in recent times - look at Dainfern: right next to Diepsloot, and prices keep going up; the waiting list is growing.

"But it has to be thought out - you couldn't have a R2 million or R3 million apartment in the core of Sandton next to an apartment worth R40 000 or R50 000.

Nxumalo said the cabinet had approved an inter-ministerial committee to oversee the project, which kicks off officially in April next year.

Members of the committee, due to meet within days, include Sisulu, Public Works Minister Stella Sigcau, Finance Minister Trevor Manuel, Provincial and Local Government Minister Sydney Mufamadi and, when necessary, ministers responsible for transport, water, education and health.

Other plans to boost housing delivery include:

Expanding the R28 500 housing subsidy to thousands more by raising the income qualification from R1 500 a month per family to R3 500. Those earning over R1 500 would have to add money or help with construction, however, she said.

Making state-owned land available for housing and reducing the cost of land and infrastructure to first-time homeowners, leaving more of the subsidy available for buildings.

Encouraging banks to extend mortgages for low-cost homes, probably including a 5% subsidy to help families earning R3,500 to R7,000 to afford a 10% deposit on a home.

Giving high-density developments such as new or renovated apartment blocks rates rebates to help ensure that they are affordable to tenants and profitable to developers.