SINGAPORE — Former homeowners currently living in public rental flats will soon get help to purchase two-room flats under a new initiative called the Fresh Start Housing Scheme, Prime Minister Lee Hsien Loong said today (Aug 23).

The scheme aims to help those who previously owned a flat, but have sold it and now live in rental units.

“These households find it particularly hard to afford another flat. These families often have many different problems — jobs, relationships, children’s education, sometimes drugs. Their housing problem is a result of their other problems. It’s not the house being an issue, but because their lives are not in order, so the house is a consequence of the mess,” Mr Lee said. 

It would be unfair for the Government to provide “another grant” to these households, he said, as they had previously benefited from Housing and Development Board (HDB) subsidies. However, under the new scheme, two-room flats will be tagged with shorter leases and stricter resale conditions, making them more affordable. 

The Government will also support these households with counsellors, who will guide them to solve their problems “holistically”. The families will, in turn, “have to show that they are putting their lives in order, determined to get back on their feet, and committed to putting their children through school”, Mr Lee said.

“I am very concerned about the future of this group because without help, they may be permanently out of reach of getting a flat of their own. They will be trapped in poverty and their children will be affected.

And you perpetuate the cycle into the next generation,” he added. 

“With these extra arrangements, we can justify providing a grant — the Fresh Start Housing Grant — to help them pay for the flat. Over time, with guidance, with help, through this scheme, they can own their own home again.”

As for people living in rental flats who have not bought a flat before, the recently restructured two-room flat and studio apartment schemes will be useful, Mr Lee said. The enhanced Special CPF Housing Grant will also help make flats more affordable.

“Two years ago, I showed you that if you earn S$1,000 a month, you can buy a two-room flat. With the latest changes, even if you earn below $1,000, but hold a stable job and contribute to CPF regularly, you can still afford to have a two-room flat,” he said.