Introduce affordable rent-to-own scheme for B40 youth

Introduce affordable rent-to-own scheme for B40 youth


In addressing the issue of housing affordability and ownership among youth in the low-income group (B40), one avenue to explore is the implementation of the Rent-to-Own (RTO) scheme for affordable housing units.

Anecdotal evidence has shown that it will become harder for youth to purchase homes amid this challenging time when employability is uncertain for new entrants in the labour market. Therefore, they are at risk of not earning stable and sufficient incomes.

There was a positive first signal in May, after the announcement made by Federal Territories Minister Tan Sri Annuar Musa, about the government considering a Rent-then-Own scheme for B40 youth in Kuala Lumpur who are civil servants, or running their own businesses but cannot afford to own homes.

Under the proposed scheme, over 1,000 housing units will be rented out for RM800 to RM850 per month, while affordable houses priced less than RM200,000 are built. Once the housing projects are completed, the rental payments could be used to pay for the deposit of the new houses or used as rebates.