MOLIT announces 2015 comprehensive housing plan for residential stabilization
- Resident support for up to 1.26 million households -
- This year aims to complete the construction of 434,000 houses, of which 88,000 are public houses -
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□ The Ministry of Land, Infrastructure and Transport (MOLIT, Minister: Yoo ILHO) announces ｢2015 comprehensive housing plan｣ after deliberations by the housing policy review commission.
▪ According to the Framework Act on Dwelling, target for households to get housing support is put forward as policy goal - Up more than 20% from the previous year (1.04 million households) to the maximum of 1.26 million households will get residential support this year *120,000 public rentals (70,000 newly constructed rentals + 50,000 purchased·jeonse*rentals), guarantee deposit on rentals·purchasing funds support for 205,000 households, housing vouchers for up to 970,000 households * Instead of paying monthly rent, a renter will make a lump-sum deposit on a house
▪ House supply plan is switched to completion, instead of licensing - This year's target is expected to be 434,000 houses, out of which 88,000 are public houses * 88,000 public houses : 70,000 publicly constructed rentals, 18,000 public for-sale houses
▪ Policies of「Normalization of housing market」and「Residential stability for low income and middle class households」continue - Maintain the policy to normalize the housing market: support for households with actual demand to buy houses, rational regulations, etc. - Improve policies to support dwelling for low income families, including public rentals and housing vouchers - Stabilize middle-class dwelling by fostering corporate rental houses
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1. ’15 Housing support plan
□ In accordance with the planned Framework Act on Dwelling (the standing committee voted on 30th April, the legislation and judiciary committee on 6th May), the government newly proposed the target household for housing support as a policy goal, and plans to provide housing support to the maximum of 1.26 million households, including public rental houses, housing funds and housing vouchers.
ㅇ This years plans to provide a total of 120,000
(record-high) public rental houses, of which 70,000 are newly
constructed , 50,000 are purchased or jeonse* rentals.
* Instead of paying monthly rent, a renter will make a lump-sum deposit on
a house
< Public rental houses supply from '05-'15(completion)
(unit : 10,000) >
|
’05 |
‘06 |
’07 |
’08 |
’09 |
’10 |
’11 |
’12 |
’13 |
’14 |
’15 |
|
7.3 |
6.2 |
6.4 |
9.6 |
10.5 |
10.8 |
9.0 |
5.6 |
8.0 |
10.2 |
12.0 |
ㅇ In addition, 205,000 households will receive low interest-rate deposit on rentals · purchasing funds.
ㅇ The target households for housing vouchers for low-income households without housing ownership or living in rents (43% below the median income) will be expanded to the maximum of 970,000 households.
* A total of 1.26 million households (120,000 public rentals + 205,000 financial support + 970,000 housing vouchers - 35,000 overlaps between public rentals and jeonse rentals) will receive housing support.
□ Also, the house supply plan is switched from the existing licensing system with less predictability to a manageable construction completion system.
ㅇ This year is expected to construct a total of 434,000 houses, similar to that of 2014's (431,000 houses), of which 88,000 are public houses: 70,000 rentals and 18,000 for-sale.
< House completion quantity
(unit: 10,000, brackets indicate public houses) >
|
Category |
‘14 |
|
‘15 forecast |
|
||
|
Jan.-Jun. |
Jul.-Dec. |
Jan.-Jun. |
Jul.-Dec. |
|||
|
National |
43.1(8.2) |
20.1(3.7) |
23.0(4.5) |
43.4(8.8) |
21.0(4.3) |
22.4(4.5) |
|
- Apt. |
27.7(8.2) |
13.3(3.7) |
14.4(4.5) |
26.4(8.8) |
12.7(4.3) |
13.7(4.5) |
|
- Etc. |
15.4 |
6.8 |
8.6 |
17.0 |
8.3 |
8.7 |
|
Capital |
18.6(4.4) |
9.3(2.2) |
9.3(2.2) |
20.2(4.1) |
9.2(2.3) |
11.0(1.8) |
|
- Apt. |
10.3(4.4) |
5.7(2.2) |
4.6(2.2) |
10.6(4.1) |
4.8(2.3) |
5.8(1.8) |
|
- Etc. |
8.3 |
3.6 |
4.7 |
9.6 |
4.4 |
5.2 |
2. This year's major housing policies
(1) Normalization of housing market
□ Support for households without housing ownership
ㅇ Support 85,000 households through housing funds including didimdol mortgage* and revenue sharing mortgages.
* low-interest mortgage for low-income or no housing ownership households
- Improve didimdol mortgage by lowering interest rates by 0.3%p
ㅇ Through trial revenue-sharing mortgage by commercial banks, didimdol mortgage(housing funds) mortgage guarantees, limited responsibility mortgage system (housing fund mortgage), support low-income households without their own houses to purchase houses
□ Make regulations adopted during overheated market periods rational
ㅇ Normalize rules regulating rearrangement projects by simplifying redevelopment·reconstruction procedures
* (Example) More than 2/3 of households should agree→ reduced to more than 1/2 of households
ㅇ Reorganize house supply systems by eliminating one of the qualification of a subscription that requires being without no housing ownership, and simplifying the process of selecting residents ('15.3)
ㅇ Set limits to contributed acceptance by law in order to excessive acceptance
(2) Residential stabilization for low-income and middle-income households
□ Provide 120,000 public rental houses (record-high)
ㅇ Complete the construction of 70,000 rental houses, and purchase 15,000 rental houses (12,000 existing houses, 3,000 reconstructed), provide 35,000 jeonse rental houses
ㅇ This year 800 'Happy houses' in downtown areas of Seoul will be occupied
* 38,000 houses, up by 12,000 from 2014, approved and newly 20,000 began to be constructed
ㅇ Improve the qualifications for tenants, including income·asset to operate public rental houses, while transfer LH's rental houses management tasks to the private sector
□ Foster corporate rental houses
ㅇ Revise ｢Rental Housing Act｣ to ｢Special Act on Private Rental Housing｣ to foster corporate rental house (Rep. Kim Sung-tae as main sponsor, proposed on Jan. 29th, 2015)
ㅇ Make 10,000 lots own by LH available for corporate rental projects and publicly select project operators
* In April 2015, the 1st selection done for 3,265 houses in Dongtan 2, Wirye, Kimpo Han River areas
ㅇ Also make lots suggested by the private sectors, including Incheon dohwa district, KoRoad site in Sindang-dong.
□ Housing vouchers
ㅇ This year, a total of 970,000 households will receive housing vouchers
* Target households for housing vouchers: before the reorganization, 33% of the median income (700,000 households) → expanded to 43%(970,000)
* An average monthly voucher payment per household: 90,000 won(’14) → 110,000 won (’15)
□ Strengthened housing fund support
ㅇ Provide about 120,000 households with low interest-rate deposit rentals·monthly rental payments, and strengthen financial support including lower interest rate and expanded target for housing fund support
* interest rate for deposit on rentals: down by 0.2%p, interest rate for monthly rental payment loans: down by 0.5%p
ㅇ Lower construction project interest rates including 'happy houses', people·public rentals
* people·happy houses : 2.7%→2.0%, public rentals : 2.7∼3.7%→2.5∼3.0%
□ Improve infrastructure to protect renters
ㅇ Enact Framework Act on Dwelling
- Establish the dwelling right, the proper residential standards and residential welfare centers, etc.
ㅇ Establish a housing lease dispute mediation committee
ㅇ Review gradual reduction of restriction of computation ratio in cases of
conversion into monthly rent in accordance with the housing lease protection act
(Detailed implementation methods to be
determined by the special commission on low-income households residential
welfare of the National Assembly)
* Restriction of the computation ratio in cases of conversion into monthly rent in accordance with the housing lease protection act (current): 7%(base rate 1.75%x4 times)
ㅇ Strengthened support for deposit repayment
- Reduce guarantee fees by 25%, expand target households for deposit repayment (For apartment tenants from LTV 90%→to 100%)
- Allow installment payment of guarantee fees (1 year→6 months), expand banks (1→all commercial banks) and improve procedures
ㅇ Improve housing statistics, including rental houses
- Expand housing statistics samples (for-sale·jeonse 20,000, monthly rentals 3,000→25,000), aim for detailed monthly rental statistics(monthly rentals →divide them into 3∼4 types according to deposit types), develop composite jeonse-monthly rental index.
(3) Improve residential environments and maintenance·management
□ Improve housing qualities and strengthen management of public house
ㅇ Work on legislating the public housing management act in order to settle disputes related to public houses and better manage·support public houses(Rep. Kim Sung-tae as main sponsor, proposed on July 31st, 2014)
ㅇ Distribute public houses diagnosis manuals, and make maintenance activities, including external audit, transparent
ㅇ Establish standards for public house exhaust installation, push for reducing housing energy(construction of zero-energy housing complexes, etc.), implement the certification system for longevity houses
□ Improved old·shabby housing environments
ㅇ Support renovation of old·public houses
ㅇ Diversify measures to improve housing environments
(LH conducts alone→public+private implement jointly)
ㅇ Repair and renovate public houses to prevent safety accidents
ㅇ Improve the public management system, stimulate rearrangement projects in connection with corporate rental houses, etc.
*Attached: ｢2015 Comprehensive Housing Plan｣