The Housing Authority announced today that public housing rents will rise 10% from October 1 and that it will provide a special relief measure for tenants by waiving the extra rent payable in the first three months following the rent adjustment.

The announcement came after the authority's Subsidised Housing Committee today endorsed the outcome of the 2024 rent review of public rental housing (PRH).

According to the rent adjustment mechanism under the Housing Ordinance, PRH rent is reviewed every two years.

A report compiled by the Commissioner for Census & Statistics for the rent review showed that the income index of 2023 was 10.73% higher than that of 2021.

Given that there is a 10% cap on the rate of rent increase, PRH rent will be adjusted upwards by the same percentage.

The increase will be about $230 per month on average, ranging from $49 to $572.

The authority said it believes most PRH tenants should be able to afford the rent increase as excluding Comprehensive Social Security Assistance households, about 60% of the tenants will have a monthly rent increase of no more than $250, while 2% of tenants will have to pay no more than $100 extra in monthly rent.

Having regard to the prevailing socio-economic circumstances, the extent of the rent increase as well as the impact on PRH tenants and the authority's financial position, the committee decided to provide tenants with a waiver of the extra rent payable each month in the first three months following the rent adjustment.

Such a measure will result in a total of $575 million of rental income foregone for the authority.

Noting that the rent adjustment will take effect from October 1, the authority said it will notify all tenants in writing one month in advance.