Home Support system China goes further to support affordable rental housing development

China goes further to support affordable rental housing development

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A construction site of an affordable rental housing project in Shenzhen, Guangdong province, China, August 17, 2021. /CFP

A construction site of an affordable rental housing project in Shenzhen, Guangdong province, China, August 17, 2021. /CFP

China will not include affordable rental housing loans in the management system that sets ceilings on home loans, the country’s central bank said on Tuesday, in a bid to support the development of affordable rental housing.

According to a statement issued jointly by the People’s Bank of China (PBOC) and the China Banking and Insurance Regulatory Commission, financial institutions should step up support for affordable rental housing in accordance with the law while managing risk and pursuing a sustained development.

The move is expected to increase loan issuance for affordable rental housing projects and aims to further improve the country’s housing support system, the PBOC said.

To protect its financial system against risks, China has implemented the mortgage credit management system since January 1, 2021, imposing ceilings on outstanding mortgage and mortgage loans for lenders.

In the future, the central bank is committed to establishing a rental housing financial system and promoting the healthy development of the real estate industry.

(Contributed by Xinhua)