Public housing belongs to a bygone era
The big increase in the number of young, single people applying for public housing threatens to place an unbearable burden on the system.
Figures released by housing officials show 44 per cent of new applicants last financial year were single. Six years ago, the proportion was only 21 per cent. The trend has led to worries about the development of a dependency culture among the young and fears that the public housing system will be swamped.
It poses yet another problem for the embattled Housing Authority, already facing worries about its budget and court challenges over rent levels and the Link Reit privatisation. The government's response has been to put forward proposed measures targeting young, single people. They include an outright ban, a quota system or a system that gives priority to older applicants.
There is clearly a need for the government to establish priorities when deciding how to make the best use of scarce resources. The rise in the number of young people applying for public housing is a symptom of a system that has served Hong Kong well in the past but is now outdated and ripe for reform.
Public housing should be available only to people who really need it. That was certainly the intention when Hong Kong's system was first developed in the wake of the 1953 Shekkipmei fire, which left 50,000 people homeless.
The programme was initially only for families. It was later extended to couples. Single people were not allowed to apply until 1985. Since then, more small flats suitable for one-person households have been built.
Single people are entitled to public housing so long as they are at least 18, have a monthly income of less than $6,600 and assets worth less than $170,000. Students and university graduates may qualify. So it is no surprise that they are among those on the waiting list.
Hong Kong society has changed a great deal over the past 20 years. People get married later and the young are more inclined to want to leave the family home and strike out on their own.
The rental market for those on low incomes is not very well developed in Hong Kong. Public housing is one of the few realistic choices for those seeking inexpensive accommodation. This is why the number of young and single applicants is growing.
There is clearly a need for change. But it should be much more extensive than the narrow - and discriminatory - measures proposed by the government.
The system is meant to 'provide basic housing subsidy to those in need'. That is what it should do. Those who are in need may be young or old, married or single. It should not matter, so long as they genuinely require subsidised accommodation.
Housing officials have complained that young, single people are abusing the system. Some of them undoubtedly are - but they are not alone. Many of the people living in public housing can no longer be described as needy.
Means tests are not carried out on tenants until they have been in a flat for 10 years. Even then, residents whose income is above the permitted limit are allowed to stay. They just have to pay more in rent.
There is a need to develop a more sophisticated system that ensures that those who can afford to live in private accommodation do so.
In the short term, this could involve a points system that is better suited to working out which applicants need subsidised accommodation.
The longer-term aim should be to move away from public housing altogether. It has served its purpose but belongs to a bygone era.
There are more efficient ways of ensuring that the needy are provided for. The provision of rent subsidies for use in the private market is one option that should be considered.
The growth in applications by single people should certainly be tackled - but as part of an overhaul of the system.
