The Housing Authority has endorsed a proposal allowing Home Ownership Scheme and Tenants Purchase Scheme flat owners to pay their premium after the lapse of the first two-year alienation restriction period.

This will provide greater flexibility for 39,000 HOS owners and 57,000 TPS owners to dispose of their flats falling within the third to fifth year alienation restriction period in the open market before the expiry of the five-year alienation restriction period.

Owners with buyback applications being processed will be able to switch to premium applications without forfeiture of the paid administrative fee for buyback applications under a special one-off arrangement.

Income boost

The new arrangement will boost premium income, expected to be about $182 million per annum for the authority, but will also save costs in the buyback of flats and the management of vacant stock. The income can be used for the production of more units for families in genuine need.

The new arrangement will increase the mobility of the property market as owners will require alternative accommodation or trade up their properties in the private housing market.