Recognising that South Africa is one of the most unequal societies in the world, the government has a pivotal role in equalising the imbalance and unjust socio-economic conditions exposed to the marginalised and disadvantaged communities. The establishment of the social housing programme promised a change in the state of housing provision and an outlook towards spatial transformation for urban centres still staggered by the legacy of apartheid spatial planning and land dispossessions. The spatial transformation envisioned was to be anchored by restructuring zones entrusted with the determination of suitable areas for social housing projects. The study analysed factors impeding the ability of social housing programme in fulfilling a core government mandate of reversing the spatial imbalances in urban areas. The research utilised a mega social housing project ‘Aloe Ridge Social Housing’ located in Pietermaritzburg to assess the impact of the social housing in transforming urban space. The study draws form the theoretical perspective of right to the city, locational and smart growth theories as foundation for the provision adequate housing, locational choice and inclusive developments. The research literature explored the global comprehension and application of various social housing programmes and the commitment towards inclusive urban centres. A South African perspective on social housing is advanced while articulating the historical implication of colonial and apartheid rule towards housing provision and land availability for low-income households. The study research methodology employed a mixed-method approach towards data collection process, selected for its ability to account for demographics data analysis and the need to comprehend personal experiences of beneficiaries. The research utilised purposive sampling method in locating the study area and acquiring data from the social housing beneficiaries and key informants. The data collected revealed that the social housing programme has performed a significant task in securing affordable housing to low-income households, however its impact towards spatial restructuring in urban centres has been minimal. The research outcome uncovered a policy gap in the link between social housing projects land assembly process and municipal development policies, impeding the charge towards spatial inclusion. The study advances that the social housing restructuring zone guidelines must be reconfigured to ensure compulsory alignment municipal spatial planning plans. It further proposes an increase in the development of inclusionary housing to counter the impact of limited suitable land and costly land assembly process while also sharing the social responsibility with the private sector.