Fresh Start Housing Scheme To Help Rental Dwellers Own Homes

The Republic’s housing programme has helped more than 90 per cent of HDB dwellers own their flats, but Prime Minister Lee Hsien Loong noted that a small group still live in rental units.

In his speech in Malay for the National Day Rally on Sunday (Aug 23), Mr Lee said that within this group, the Malay community is over-represented and many are young families with marital and financial problems – including those who may have bought a flat before, but have since gotten divorced and now live in rental flats.

Elaborating on the issue in his English-language speech, Mr Lee said the Government cannot give these households another grant to buy another flat, as they had already received subsidies on their first flat.

“So they will find it difficult to afford another flat. I am very concerned about the future of this group. Without help, a flat of their own may be permanently out of reach. They will be trapped in poverty and their children will be affected. And you perpetuate the problem into the next generation,” Mr Lee said.

To help such second-timer households own a two-room flat, a Fresh Start Housing Scheme will be introduced. The flats will come with shorter leases and stricter conditions on resale so that they will be more affordable. Support in the form of counselling will also be provided to help the families solve their problems holistically.

But Mr Lee said the families will have to play their part, “show that they are putting their lives in order, determined to get back on their feet, committed to putting their children through school”. If they show that, the Government can justify providing the grant to help them pay for the flat.

It is a major initiative that will take time to work out, he said. Details of the scheme will be announced later.

Source: www.channelnewsasia.com