SEPANG: The Selangor government plans to buy unsold low-cost houses or flats and rent them out to those earning RM750 to RM1,500 to provide the lower income group with affordable housing.

This is irrespective of whether the applicants are single or married.

Mentri Besar Datuk Seri Dr Mohamad Khir Toyo said that most people were keen to rent, adding that the state government might set up a People’s Housing Fund.

This will give the state the financial capacity to buy the houses and rent them out.

''For this, we need to get the financial support of the Federal Government, especially the Housing and Local Government Ministry.

''It would require a few million ringgit to set up this fund but if it’s going to benefit the people then, we would want to take it on,'' he said at the KL International Airport upon his return from Mecca after performing his umrah for seven days.

He said that young people from other states who came to Selangor to work and those in squatter settlements would prefer to rent.

''We found that about 30 to 40 bachelors rent a small house as their initial salaries are not much. It is after five to 10 years that this segment of people starts to buy houses with their savings,'' he said.

''It is good for young people to save towards a bigger deposit for the houses instead of being tied down by huge housing loans,'' he said.

Dr Khir said he would discuss with Housing and Local Government Minister Datuk Seri Ong Ka Ting on the need for the housing fund and on the legal aspects for the proposed rent and buy scheme.

In a recent front-page report, Ong said his ministry would ask the Cabinet to allow singles with dependants – parents and siblings – to be eligible for low cost units.

He also said other proposals included the rent and sale scheme.