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By Li Fangchao (China Daily)
Updated: 2007-08-14 09:50

Families to be included in the low-rent system will be decided by local governments with reference to per capita discretionary income and housing standards.

The circular also tightens management of the economically affordable housing system, a policy to provide fairly cheap houses with government subsidizes.

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The size of such houses should be about 60 sq m, and cannot be resold within a five-year period. Local government will have first purchase priority.

The circular also called for a speed up in the renovation of urban shanties to ensure shelter for the poor and floating population.

James Jao, chief executive officer of J.A.O. Design International Architects & Planners Ltd, said the circular was a "positive move" as it "actively resolves housing difficulties".

"Government intervention is imperative to provide housing, especially for the poor," he said.

He suggested the establishment of a special government organ to deal exclusively with housing problems.

Zhao Xiao, an economist with the University of Science and Technology Beijing, said construction of a large number of low-rent houses implies an "unbalanced income distribution system", which should also be addressed.

Agencies contributed to the story

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