Families awaiting BTO flats say $300 rental voucher is inadequate

Some say they will continue to apply for an interim flat as market rents are steep

- Isabelle Liew

After failing to secure an interim rental flat under the Parenthood Provisional Housing Scheme (PPHS), an assistant manager who wanted to be known only as Ms Peh resigned herself to renting a three-room flat in Ang Mo Kio for $2,900 a month in 2022.

The 34-year-old, who works in healthcare, said she was disappointed when she learnt that rental vouchers under the PPHS for flats or bedrooms on the open market were fixed at $300 a month.

National Development Minister Desmond Lee announced details of the voucher scheme on March 5 during a parliamentary debate on his ministry's budget.

The voucher scheme will run from July 2024 to June 2025, allowing eligible families waiting for their Build-To-Order (BTO) units to offset rent for a Housing Board flat or bedroom on the open market.

But Ms Peh, who applied more than three times for a temporary home in 2021 before committing to a two-year lease, said: "$300 a month is not sufficient support at all, compared with high rents and rising costs of living.

"I have blown my savings, and the financial stress took a toll on my marriage. By the time my BTO flat is ready in 2025, I'm not sure if I'd have enough to cover the remaining down payment." To qualify for the rental voucher scheme, families must have a monthly household income of $7,000 or below, and have an uncompleted flat from HDB's sales exercises.

The initiative aims to provide these families with more support as HDB works to double its supply of interim rental flats under the scheme from the 2,000 units now to 4,000 units by 2025.

Other buyers awaiting their BTO flats told The Straits Times that the rental voucher scheme was a good initiative, but that they would continue to apply for a PPHS flat as rents on the open market are steep.