On the occasion of a recent launch by the vice-minister of housing and urban and rural construction of china, the chinese communist party (cpa) in beijing on 26 august (fong lingling), the chinese vice-minister of housing and urban construction tung ziang mentioned the establishment of a system of house examinations, housing pensions and housing insurance, as well as long-term mechanisms for the safe management of houses throughout their life cycle. Among them, the housing pension received extensive attention. Why do houses have to be “old”? Where does this “penalty” come from
The head of the relevant department of the ministry of housing and construction, in reading the policy to the media on the evening of the 26th, stated that the establishment of a housing pension system, after entering the period of renewal of the city, was an effort to maintain the primacy of the people, to address the plight of the population and to strengthen one of the most important tools for the safe management of housing, both basic and long-term. The ministry of housing is piloting the housing pension system in some municipalities and is actively exploring it in the municipalities concerned。
According to the data, by the end of 2022, nearly 20 per cent of existing houses in towns and cities in china had been built for more than 30 years, and nearly 80 per cent were expected to become “old neighbourhoods” by the end of 2040. The size of the old houses that need to be maintained and renovated is no longer negligible. The vice-president of the shanghai institute for evictions and real estate has made a major leap forward in the analysis of china new zealand, according to which a housing pension is a financial support for the full management of housing。
Prior to this, china had in place a system of “funds for specialized residential maintenance” for house maintenance and renovation. The funds are earmarked for the maintenance, upgrading and renovation of common premises, after the completion of the maintenance of common facilities and equipment, and are paid for when residents purchase housing. Since 2004, funds for specialized residential maintenance have been required to pay for the issuance of a home title certificate。
However, a drastic leap forward suggests that the system of funds for specialized residential maintenance has created new problems in the exercise, such as the lack of regularization of the collection and management of housing maintenance funds. With the increase in the size of the housing stock and the ageing of the housing stock, there is a need for an updated, more systematic and comprehensive system of financial security for house maintenance and management, in particular for public maintenance at the government level。
Resource mobilization is only one element, and further research is needed on how to use it. Addressing the cumbersome procedures for drawing up funds for specialized residential maintenance and the difficulty of implementing a system of renewal will also need to be continued in the piloting of housing pensions。
The financing of housing pensions has been the focus of recent discussions. The housing pension consists of both individual and public accounts. According to tung jianjiang, a portion of its personal accounts has been established through contributions to the housing special maintenance fund, “the pilot focusing on the establishment of public accounts by the government”。
According to the head of the relevant department of the ministry of housing and construction, public accounts are set up in accordance with the principle of “no additional personal burden, no impairment of personal rights” and, in the case of the pilot municipalities, can be raised by the local government through a combination of financial subsidies and land concessions, with the aim of establishing stable sources of funds for the safe management of houses, without additional contributions from residents and without increasing the personal burden。
As to how this money is spent, the officer-in-charge stated that the individual account for the housing pension and the public account fund together guarantee the security of the house throughout its life cycle. Personal account funds are earmarked for residential co-location, maintenance and upgrading of common facility equipment after the expiry of the warranty period, and for upgrading, in accordance with the regulations governing the management of funds for specialized residential maintenance. Funds in public accounts are used mainly for expenses such as house examinations and insurance。
In terms of drastic leap forward, this means that the housing pension system is a good livelihood project and a long-term housing security project. The establishment of a housing pension system, which provides a stable and long-term source of funding for aftercare, maintenance and insurance, will alter the “failure” of the property maintenance fund and provide efficient and flexible support for safe house management。
According to zhang daewei, the chief analyst of china's real estate, housing pensions are necessary for the maintenance and renovation of old houses and it is in the interest of the people to ensure their safety. With regard to their market impact, further observations will be made after specific programmes have been identified. (concluded)
