Income limits for public rental housing waiting list applicants will rise by an average of 1.8% for 2005-06, the first increase in six years.

The Housing Authority estimates 127,700 non-owner occupied households in the private sector (34.9%) will be eligible for public rental housing, up 1,600.

The authority's Subsidised Housing Committee today also agreed to set the asset limits for elderly households at two times that for non-elderly applicants. The new set of limits is applicable to nuclear and non-nuclear (with unrelated members) households comprising solely the elderly.

Limits justified

The authority said members accept there is a strong case to adopt a different set of asset limits for elderly households, as most are either retired or on very low income, and many rely on savings to meet daily expenses.

The committee accepted the existing methodology for assessing income limits should be retained following a thorough examination of possible areas for change.

For waiting list income limits, the existing methodology which was substantially relaxed after a comprehensive review in 2002, has proved its resilience and flexibility in coping with major economic adjustments in the past few years.

Actual registration figures show between 1999-2000 and 2003-04, the income limits were adjusted downwards in line with the relevant price and rental indicators. Yet some 35,000 households were successfully registered on the waiting list per annum, as opposed to around 25,000 between 1994-95 and 1998-99 when the income limits hit a record high.

Asset limits unchanged

Between 1999-2000 and 2003-04, the authority re-housed 30,000 waiting list applicants to public rental housing per annum. The respective figure for 1994-95 to 1998-99 was only 15,000. The committee decided to maintain the asset limits at the present level.

It has been the authority's established policy to review annually waiting list income and asset limits to ensure public rental housing is available to those in genuine need.