Two schemes approved to enrich housing ladder

The Housing Authority on Thursday approved two schemes aimed at enriching the housing ladder, as stated in the Chief Executive's 2025 Policy Address. A pilot scheme will be introduced to allow those who have owned a subsidised-sale flat for ten years or more to let their units with unpaid premium to eligible white form applicants – non-homeowners who pass asset-limit tests – after paying relevant fees. Eligible owners and potential tenants can apply for a HK$400 certificate during the application period, then identify suitable matches through an information sharing platform or via property agents. Tenants must then apply for another HK$400 "Nomination Certificate" from the authority or the Housing Society before entering a tenancy agreement, and owners would have to pay a Letting Permit Fee on a quarterly basis. The quota has been set at 3,000, and the authority will monitor the implementation of the programme and review its effectiveness. The authority will also launch the Flat for Flat Pilot Scheme for Elderly Owners, allowing those who are 60 or older who have owned their subsidised-sale flat for a decade or more to purchase a smaller unit or one that is located in a more remote area with premium unpaid, after selling their original one in the secondary market. Speaking to reporters after a meeting, authority member Stephen Cheung said these moves will help revitalise existing housing resources and provide more rental options for low and middle-income families. When asked whether the Letting Permit Fee would give rise to a black market, Cheung said the fees are aimed at recouping the costs of the government subsidy, and it would instead help to prevent and curb illegal rental situations. "In the past few years, we have seen cases being prosecuted, and homeowners who rent out their flats illegally have to bear legal liability, such as paying a fine and even imprisonment," Cheung said. "So our scheme is actually helping homeowners to legally rent out their apartments," he added. Both schemes will be open for applications in September. Edited by Aaron Tam