Hong Kong’s most well-off tenants will be hit in the pocket under new policy

Hong Kong’s Housing Authority has approved the government’s more aggressive plan to discourage well-off tenants staying in public rental homes, adding that the increase in rent will bring about an extra HK$1.5 billion (US$193 million) of revenue every year.

Housing Authority member Cleresa Wong Pie-yue said that the main purpose of the adjustment was not to generate more money for the government, but to make regulatory policies fairer.

The announcement on Friday confirmed the Post’s earlier report that the government intended to raise the rent of well-off tenants in public rental flats up to more than double the original amount, in addition to some being forced out in four years’ time.

“We have heard from various sources and from the public [that] for quite some time that compared with ordinary public housing tenants, well-off tenants are paying less and this is not quite right,” Wong said, adding those who were able should pay more.

Wong added that ordinary public rental housing residents would have to pay about 10 per cent of their income for housing expenses, but well-off tenants only put 7 per cent of their income towards rent.

That percentage would increase to about 11 per cent if the higher levels were imposed.