Ho homes in on savings scheme for youngsters

Stacy Shi

Legislative Council members have proposed allowing youngsters to access their mandatory provident fund retirement savings for down payments on homes.

Secretary for Housing Winnie Ho Wing-yin said the administration is considering subsidized housing savings schemes for the young.

Speaking in a Legco meeting yesterday, Ho said there has been a significant drop in the number of applicants on the public rental housing waiting list over the past five years.

Notably, the number of new single applicants under 30 has decreased by 50 percent, indicating shorter waiting times and better housing options for young people.

Election Committee Legco member Benson Luk Hon-man expressed support for the MPF first home purchase scheme, believing it would empower young people to use their own funds for home purchases.

Frankie Ngan Man-yu of the Democratic Alliance for the Betterment and Progress of Hong Kong proposed that the administration allocate a portion of rent paid by young people as a lump sum upon lease termination that can go toward down payments for a home.

In response, Ho said that the administration is "open-minded" to establishing a savings scheme, emphasizing the need to evaluate various factors, including the amount involved.

"We need to consider whether the savings will be designated for specific types of properties or if the properties must be completed within a certain timeframe," she said.

Chan Kin-por, who represents the insurance sector, suggested that banks extend mortgage repayment periods to alleviate residents' financial burdens.

He proposed aligning repayment terms with the construction quality of residential properties, potentially extending periods by five to 10 years to revitalize the private property market.

Bill Tang Ka-piu, representing the Hong Kong Federation of Trade Unions, stressed the importance of eliminating substandard subdivided units.

He also recommended requiring landlords to disclose information about tenants with children, enabling authorities to provide details about transitional housing and social services.

Ho reiterated that the proposed basic housing unit initiative would not simply be a rebranding effort.

She gave an assurance that minimum standards would be established to address existing substandard subdivided units, along with a registration system to ensure compliance.