REASONS FOR HOUSING AND DEVELOPMENT BOARD'S SUBLETTING POLICY

Dr Wang Kai Yuen asked the Minister for National Development what were the reasons for the subletting policy of the Housing and Development Board when it was first implemented and whether a review is appropriate in the circumstances today.

Dr Richard Hu Tsu Tau: The public housing programme and its associated policies are designed to provide affordable housing to Singaporeans. HDB flats are, therefore, intended for owner-occupation and not as an investment to generate rental income.

It is for this reason that HDB lessees are not normally allowed to sublet their entire flats. Subletting of whole flats is permitted by HDB only under special circumstances such as when lessees have to study or work overseas for extended periods. HDB's approval is required for subletting of entire flats.

The policy to allow subletting of rooms in HDB flats was implemented in 1973. The objective was to allow HDB lessees with small families to sublet spare rooms in their flats. This is to encourage more productive use of space. However, lessees must continue to live in their flats. Besides fulfilling the owner-occupation condition, this requirement also has the advantage of ensuring that tenants abide by the subletting conditions and do not become a nuisance to their neighbours.

The policy on owner-occupation is still necessary for the reasons stated. The subletting conditions are designed to support this policy.