At the present stage, China’s housing rental market has received relatively high attention, and coupled with the continuous promotion of the urbanization construction process, the financial support in housing rental has made a good start, further satisfying people’s housing needs and effectively solving the unreasonable problem of housing supply and demand structure.
Current Situation of Housing Rental Market
(I) In terms of policy regulation
The domestic housing rental market is not mature, and the rent-to-own system is not yet perfect, so we must rely on the government to effectively intervene and effectively use financial tools to support the regulation of the housing rental market and actively support China’s real estate industry . At present, under the dual role of policy intervention and financial support, the domestic real estate industry has been effectively promoted to enter a new period of development and stimulate the activity of the housing rental market.
(ii) In terms of demand influence
Demand is the decisive factor for the development, growth and maturity of the housing rental market. In the context of large-scale population movement at this stage, the housing rental market demand is growing, especially in first- and second-tier cities, where the housing rental market continues to boom, such as Shenzhen and Dongguan, where the rental population accounts for as much as 73.4% and 65%. In the demand of housing rental market, the important role of financial support is becoming more and more prominent. Appropriately giving financial support in the housing rental market can effectively promote the rapid development of the housing rental market and continuously improve the economic benefits of the housing rental market. Therefore, it is necessary to analyze the market demand of housing rental from the perspective of financial support.
(iii) In terms of system support
In the housing rental market, financial support requires sound system support, while China’s housing rental lacks a mature and sound system, and there are contradictions between housing rental and financial support , which leads to the inability of financial support to be effectively invested in the application of housing rental. The contradictions that exist between financial support and housing rental market, in addition to the lack of a sound system, also include the late start of the domestic housing rental market, coupled with the fact that experts and scholars have only begun to pay attention to the study of the housing rental market in recent years, and the results of the study of housing rental from the perspective of financial support are even less, which cannot guide the financial practice, which is also a problem that should be concerned about the financial support carried out in housing rental.
Problems of financial support for housing rental market
(i) Lack of preferential policies for housing leasing
In the case of high housing prices, the housing rental business has a strong public welfare nature and lower rental income compared with other properties of commercial nature. The construction of housing rental projects has huge initial capital investment, high development costs and high risks, however, the lack of clear preferential tax and fee support policies by local governments in terms of property rights transaction taxes and fees and financing interest is not conducive to the inflow of credit funds and attracting the joint participation of social capital. It restrains the enthusiasm of housing rental enterprises in construction and is not conducive to the large-scale development and market-oriented operation of housing rental projects.
(2) Housing rental enterprises face difficulties in financing
Commercial banks generally provide credit support to housing rental projects in accordance with traditional fixed asset loans, and require housing rental enterprises to provide sufficient collateral when applying for loans, however, housing rental enterprises are often small in scale and weak in qualification, and their financing needs are large in amount and long in duration. It is difficult to meet the credit evaluation conditions of commercial banks, and most of the enterprises themselves are unable to issue various types of credit bonds for financing. In addition, other high-yield properties such as hotels and stores also show a strong demand for financing to the housing rental market? buck na quiet sh? s great pressure, which affects the choice of financial support for housing leasing.
(iii) The difficulty of regulating housing rental financial products
Housing rental type financial products are mainly for the rigid demand of middle and low-income people, due to the unstable tenure, the general low rental yield of rental projects, long operating return cycle and high risk, which aggravates the risk control problem of financial institutions. Moreover, it is often difficult for financial institutions to verify the repayment ability of lenders, the authenticity of loan usage, and the flow of funds, and there may be disguised funds obtained in the name of rental housing, or funds flowing illegally into high-risk areas such as the stock market and real estate market.
Suggestions for financial support in the housing rental market
(1) Draw on the experience of shantytown renovation and innovate the cooperation mode of government, bank and enterprise
Take financial support in shantytown renovation as a case study and explore financial support in rental housing construction. Combine with local government planning, encourage commercial banks to sign memoranda of financial support for housing leasing with real estate companies, and explore deep-level cooperation in the development and construction of long-term rental housing, investment and incubation, holding and operation, and later exit. The government will take the lead in building a state-owned leasing platform and establish a loan repayment guarantee mechanism with commercial banks through rating and credit granting methods. Establish a local financing risk compensation fund to reduce the risk of housing lease financing and improve the enthusiasm of financial institutions to issue loans through government financial subsidies and tax breaks.
(2) Innovate housing lease financial products and optimize the financing methods of the leasing market
Comprehensive use of syndicated loans, policy bank interest subsidies, the establishment of a real estate trust investment fund, innovative “pledge + mortgage” guarantee model, the government’s purchase of services or accounts receivable pledge to ensure the security of bank loans. Make full use of the PLS funds to support the construction of housing rental projects and reduce the financing costs of housing development enterprises. Encourage interbank market dealers association to design and launch rental housing targeted debt financing products from the perspective of poverty alleviation and inclusiveness, and directly connect rental housing construction projects with the capital market. Encourage commercial banks to launch personal housing rental loans, such as some commercial banks in Guangdong Province have launched financial products such as “mortgage loan”, “rental e loan” and “rental benefit loan” to provide tenants with Pure credit loans can be used to pay housing rent and other related expenses, meeting the credit needs of natural persons for housing leasing.
(3) Strengthening the construction of relevant platforms and enhancing the supervision and management of the leasing market
Systems such as the state-owned housing lease monitoring and analysis platform, housing lease supervision and service platform, government public housing service platform, housing lease service sharing platform, enterprise lease service management platform and government-bank cooperation housing lease platform have been established to comprehensively cover the needs of local governments in terms of lease market management, transactions and operations. In terms of technology, all housing information must be verified online, verified in the field and audited in the background before being released. To ensure the authenticity and reliability of the housing listings and pictures on the platform. In conjunction with the actual development of local leasing business management methods, strengthen the registration and filing of housing leasing contracts, and fully utilize the housing leasing supervision platform to eliminate problems such as false housing listings and black agents.
(D) to credit big data as the basis, pilot no deposit housing leasing
Make full use of the information of the credit system of the People’s Bank of China, strengthen cooperation with Alipay, WeChat and other companies, vigorously promote the “credit rental model”, and pilot online no-deposit housing leasing to effectively alleviate the pressure of tenants’ rent. For example, recently, Alipay, a subsidiary of Ant Financial Services, has launched the credit rental model, which is also a type of financial support, with more than 1 million houses registered under Alipay for tenants to choose under this model, changing the traditional “deposit of one to pay three”, “deposit of one to pay one It is a change from the traditional “deposit of one to three” or “deposit of one to one”, and the tenant’s creditworthiness is used to determine whether the apartment can be rented, which reduces the tenant’s cost investment in housing rental.
The development of financial support in housing leasing is in line with the direction of housing supply-side reform, which can maximize the effective supply of housing leasing market, meet the domestic people’s housing demand, maintain the balance of housing leasing market, effectively solve the unreasonable problem of housing supply and demand structure, protect people’s housing rights and interests, and promote the benign development of housing leasing market.