Many Chinese cities are trying to help solve the housing problems for low-income families. There are some new policies that give preference to such families looking for a home.

Mrs. He and her husband are laid-off workers in Changsha, capital of central China's Hunan province. They live in a rented home. When they heard that subsidies for affordable housing were available in the city, they filed their application at once.

The housing problem is a serious one for those low-income family. (photo: Xinhua)  

A resident He change said, "The subsidies truly help us. The price of the apartment we are interested in is 4,000 yuan per square meter. With the subsidy, it is actually a bit more than 3,000 yuan per square meter which makes it affordable for us."

The local administration in Changsha says every qualified low-income family is eligible for 80,000 yuan to buy an affordable apartment. More than a thousand families are qualified for financial support. To qualify, they must not be property owners at the present time.

In the meantime, the local government of Hangzhou, capital of east China's Zhejiang province, has put forward more flexible policies. The plan allows qualified applicants to lease an affordable apartment for five years. Their investment over that time will amount to 30 per cent of the property value.Families can then carry on making payments until the property is paid off. Then they are entitled to full ownership.

(CCTV August 19, 2008)