24 Feb 2016
China Encourages Private Rental Housing under New-style Urbanisation
Several Opinions on Promoting New-style Urbanisation Construction in Depth (hereinafter referred to as Opinions) recently issued by the State Council pointed out that new-style urbanisation is the only path to modernisation. In order to make perfect the system of urban housing, it is necessary first of all to establish a system that combines purchase with renting and market supply with government support, and put on a sound footing a housing supply regime that mainly relies on the market to satisfy the demand of people at all levels and relies on the government to provide basic housing to low-income families.
Since the promulgation and implementation of the National New-style Urbanisation Plan (2014-2020), all localities and departments have lost no time exploring reform measures and have made positive progress in various tasks of new-style urbanisation. However, problems such as slack progress in granting urban residency to rural people who have moved to cities, poor quality of urbanisation, and ineffectiveness in expanding domestic demand still exist.
The Opinions made the following proposals for the further improvement of the urban housing system: First, it is necessary to establish an urban housing system that combines purchase with renting. With meeting the housing needs of new citizens as the main starting point, efforts should be made to establish a housing system that combines purchase with renting and market supply with government support and a housing supply regime that mainly relies on the market to satisfy the demand of people at all levels and relies on the government to provide basic housing to low-income families. Permanent residents who are in a position to buy property should be given support in their purchase of commercial housing. Those who are not in a position to buy property or have no desire to buy property should be given support in renting property in the rental market. Low-income families with housing difficulties should be assured of their basic housing needs through public rental housing or the granting of rental subsidies.
Second, it is necessary to improve the housing security regime in urban areas. Housing security takes the form of combining subsidies in kind with rental subsidies, with emphasis gradually shifting to the latter. Efforts should be made to speed up the promotion of the rental subsidy system by relying on the market to increase supply and the government to provide subsidies. Support should be given to rural people who have moved to cities and have been granted urban residency in finding homes in the private rental market. The types of housing security in kind should be consolidated. Efforts should also be made to improve the system of affordable housing application, verification, disclosure, waiting and review, strictly manage the allocation and use of low-rent housing, improve the exit mechanism, and ensure the equitable, fair and healthy operation of the housing security system.
For the Chinese version of this document, please see: http://www.gov.cn/zhengce/content/2016-02/06/content_5039947.htm