The government has proposed increasing public housing rents by 10 percent from Oct 1, citing the need to cover maintenance and other related expenses, prompting lawmakers to express concerns about the financial strain this could place on grass roots residents amid an economic slowdown and soaring prices.

The Housing Bureau submit ted its rent review proposal to the Legislative Council on Mon day. Most public housing tenants will be given a three-month grace period, with current rents being maintained until January. This grace period will not apply to tenants who are considered well-off.

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Secretary for Housing Winnie Ho Wing-yin said she believes that the 10 percent increase — the maximum increase permitted under the government’s housing mechanism — is affordable. The monthly rental increases would range from HK$49 ($6.27) to HK$572, with more than 60 percent of tenants seeing increases of below HK$250, with an average of HK$230.

As of March, there were some 807,800 public housing tenants in the city. Rents range from HK$490 to HK$5,723, with the average being HK$2,297 per month.

Ho said that with the high number of tenants living in public housing, and with the requirements for extensive maintenance, cleaning, and security work in and around the properties, sufficient financial resources are essential to ensure a good living environment for residents.

The government previously raised rents by 10 percent in 2014, 2016, and 2018, with lower increases of 9.66 percent and 1.17 percent in 2020 and 2022 respectively during the COVID-19 pandemic

The Housing Authority — the Housing Bureau’s agency responsible for public housing — reviews rents every two years, adjusting them based on changes in residents’ income, with a cap of 10 percent.

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The authority cited data that shows a 10.73 percent increase in the average monthly household income for households living in public housing between 2021 and 2023, justifying the maximum rent hike.

The government previously raised rents by 10 percent in 2014, 2016, and 2018, with lower increases of 9.66 percent and 1.17 percent in 2020 and 2022 respectively during the COVID-19 pandemic, with various exemptions provided.

Ho also said that support measures are available for those in need, including over 100,000 recipients who have their rental payments covered by the government under the Comprehensive Social Security Assistance Scheme, and about 22,000 public housing households that receive partial rent exemptions under the Rent Assistance Scheme.

However, legislator and Housing Authority member Bill Tang Ka-piu said the underprivileged — such as the elderly and those on low incomes, most of whom reside in public housing — are under considerable financial pressure. He cautioned that a rent hike of HK$100 to HK$200 would present a challenge for those without alternative income sources.

Kwok Wai-keung, a spokesperson for housing affairs of the Federation of Trade Unions, agreed, citing the increased transportation costs and electricity fees, which have put extra pressure on some public housing residents.

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Lawmaker Leung Man-kwong, also a member of the Housing Authority, suggested that the current rent review mechanism should be improved to better align with Hong Kong’s ongoing economic environment.

He proposed a study into the relative balance between mini mum wages and public housing rents, to ensure that future rent reviews better reflect the actual circumstances of grassroots residents.

Contact the writer at fangxue@chinadailyhk.com