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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.

Special coverage: Housing in China Related readings:  Beijing average housing prices up 1,000 yuan since May  Draft rule on housing registration released  Life more difficult for most home buyers  Four priorities in real estate regulation  Shanghai records 29% growth in home loans

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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