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China to boost residential rental market

Updated: Jun 3,2016 8:30 PM

On June 3, the State Council issued a circular regarding the plan to boost the residential rental market aimed at improving urban residential housing conditions.

A well-regulated and improved residential rental market system will be established by 2020, according to the State Council.

Residential rental market suppliers, including house-leasing companies, real estate developers, housing intermediary agencies, and individual owners, are encouraged to play a role in the market.

Preferential policies will be carried out for market suppliers and tenants to solve urban housing problems and encourage residential rental consumption.

For example, individual house owners whose monthly income is under 30,000 yuan ($4,550) will be exempt from value-added tax until 2017, and the VAT rate for housing agencies that provide rental services will be 6 percent.

Financial institutions are encouraged to provide support for companies in the residential rental sectors.

Procedures to use public reserve funds for rent payment will be streamlined, and non-residential tenants who have local residence permits can enjoy local public services such as education and health care.

Public rental housing will also be improved as rental subsidies will be given to eligible families.

In addition, local governments are encouraged to transfer the management of government-invested-and-managed public rental houses to professional companies through public-private partnership or service purchase from private sectors.