ENG-2006 — Page 254

206

Chapter 11

Housing

Following a comprehensive review and extensive public consultation, the Hong Kong Housing Authority endorsed in November 2006 a new mechanism for determining how the rents of public rental housing are to be adjusted. The mechanism is income-based and provides for upward and downward adjustments in domestic rents according to changes in tenants' household income. Suitable amendments to the Housing Ordinance will be introduced to effect the new

mechanism.

In December 2006, the total housing stock in Hong Kong amounted to 2 473 900 flats, comprising 715 700 public rental housing flats1, 397 800 subsidised home ownership flats and 1 360 300 flats in the private sector. About 30 per cent of Hong Kong's population live in public rental housing flats with another 18 per cent in subsidised home ownership flats.

Housing Policy

The Statement on Housing Policy announced by the Secretary for Housing, Planning and Lands in 2002 sets out the following three major guiding principles of the Government's housing policy:

• The focus of the Government's subsidised housing policy should be on the provision of assistance to low-income families which cannot afford private rental accommodation;

• The Government should minimise its intervention in the private property market; and

• The Government should maintain a fair and stable operating environment for the private property market by ensuring adequate land supply and the provision of an efficient supporting infrastructure.

1

Including public rental housing and interim housing flats operated by the Hong Kong Housing Authority and rental flats operated by the Hong Kong Housing Society.