Annual rent increase must not exceed 5%! Steps taken to provide affordable housing

Recently, the Ministry of Housing and Urban-Rural Development issued a notice on preventing major demolition and construction whilst implementing the renewal of urban buildings and communities. The notice also states that the annual increase in urban housing rents should not exceed 5%.

The notice proposes the following:

Except for illegal buildings and buildings that professional institutions have identified as dangerous and have no maintenance value, existing buildings should not be demolished on a large scale.

Respect residents’ willingness to resettle, encourage local and nearby resettlement, improve living conditions, maintain neighborhood relations and social structure. The resettlement rate of residents from local and nearby urban renewal units (districts) or projects should not be less than 50%.

The State Council Information Office held a press conference on efforts to achieve housing for all people. 
Photo by Chinanews reporter Li Jinle

Ensure stable supply and demand in the housing rental market. Large-scale demolition of urban villages and older districts will prevent the imbalance of supply and demand in the housing rental market. The annual increase in urban housing rents should not exceed 5%.

At a press conference held on August 31 by the State Council Information Office, Ni Hong, deputy minister of the Ministry of Housing and Urban-Rural Development said that “according to relevant surveys, 70% of new citizens and young people in big cities now live in rented houses”.

“New citizens and young people have difficulties in housing. The problem has become prominent along with the development of urbanization. As some citizens and young people have relatively low working experience and relatively low incomes, their ability to buy houses and pay rent is relatively weak. However, houses with affordable rent are located farther away, and rent in better locations is more expensive. This has become a difficulty for citizens and young people who cannot afford houses and rent”.

“In a city, where young people have hope, the city has a future; as far as the country is concerned, only when young people have hope can the country have a future.” – Ni Hong

“The next step is to focus on implementing policies and speeding up the construction of affordable rental housing so that citizens and young people can improve their living conditions as soon as possible”.

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