Low-cost mortgages for young proposed

The government should provide low-interest or interest-free loans to young homebuyers, a think tank suggested, after a survey found nearly 70 per cent of those planning to enter the housing market prefer private property to subsidised housing.

'Housing for young people is an important matter that deserves more public attention,' said Bauhinia Foundation chairman Anthony Wu Ting-yuk as he released the findings yesterday. 'We hope our survey will stimulate wider discussions about the issue to help the government formulate a policy that addresses the housing needs of our young people.'

The survey of 1,013 residents, aged 18 to 39, found that 27 per cent intended to buy a home in the next five years. Of these, 69 per cent said they preferred private housing to subsidised flats.

Two out of three respondents said they would need government assistance to buy a flat. As to what form of assistance this should be, 33 per cent favoured low-interest or interest-free loans, while 22 per cent preferred official measures to regulate the market and stabilise prices.

Wu said the government should consider resurrecting loan schemes in view of the findings: 'Although the current interest rate is very low, it is hard to say if this [will remain so in future]. If the government can make such loans available, young people can be shielded from the risks of high interest rates.'

Wu said that he did not think the measure would hurt the market.