TNAG-1575-FCO40-2148-Housing-in-Hong-Kong-1986 — Page 32

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report, the Committee suggests a median rent-income ratio be set I find this reasonable and at not more than 15% for new estates.

acceptable.

a safeguard as

tenants.

Some

for tenants'

Intended basically affordability, this suggestion has aroused much controversy and

the regard

15% objection from public housing guideline as too high, hardly affordable by tenants and is too close to rents in the private sector, which is obviously not what public housing

should

aim at.

There are

also worries

that

of older estates will face drastic increases in their

tenants of older

rents to reach the 15% level.

doubts.

rents

set

Based

I would like to take this opportunity to clarify such

on past data,

according to

affordability of tenants.

the 15%

the Committee

guideline is well

that Figures show

is convinced that

well within the for the past few the new estates have In 1985/86, more than 70%

years, the median rent-income ratios for been very close to the 15% benchmark.

Of those who had to were Public Assistance

of those rehoused paid less than 15%, which is totally consistent with the recommendation of the Committee. pay more than 15%, a significant number recipients whose rents were paid by the Social Welfare Department and the rents would not cause them any hardship at all.

also tenants who opted for larger

who opted for larger accommodation than they 15% of They, too,

too, had to pay over were basically entitled to.

who cannot tenants For result.

were

their

income

for rents

a as

There

afford the rent of new estates, cheaper accommodation in older estates is available for them.

It has been pointed out by some commentators that the 15% guideline is too close to the level in the private sector

about 15-18%

where rents take up

distinction,

however,

must

be

of

the

drawn

here.

tenants'

The

income. A 15% guideline