The current rent adjustment mechanism for public rental housing using tenants' household income as the basis for rent adjustment best reflects their affordability.
Secretary for Transport & Housing Prof Anthony Cheung told legislators today the Housing Authority compared the ratio of average rent to average household income in 2014 and found that the proportion of income used by tenants to pay rent is decreasing.
"Under the existing law, the current mechanism caps the extent of rent increase to 10% for every two years, and there is no limit on the extent of rent decrease. With the cap in rent increase, the rent affordability of public rental housing tenants will only improve in the long term. It will not worsen," he said.
The 2016 rent review is close to completion and will be discussed at the authority's Subsidised Housing Committee meeting next month.
The Government will also brief the Legislative Council Panel on Housing on the review outcome on June 29.
