Rental rules can help cool housing market

A housing project in Qingdao, Shandong province. [Photo/VCG]

THE GOVERNMENT is to solicit nationwide public opinions on draft regulations for the housing rental market. The regulations are expected to elaborate on leasing terms and tenants' rights while urging local governments to disclose the average rent in their areas on a regular basis. Beijing News commented on Monday:

Many people believe the rights of landlords override that of tenants. Such a longstanding perception points to the fact that the rights of tenants have been poorly protected in the past. That explains why most home-renters prefer a short-term lease and the country's rental market remains underdeveloped and immature.

The truth is that the interests of owners and tenants are in essence equal when it comes to residency rights. What homeowners have is a long-term lease on their property, while tenants have a short-term lease, hence they should not be treated differently.

The poorly developed rental market is one of the reasons for the overheating of the country's real estate market.

The rental market is supposed to help regulate the real estate market, but the lack of protection for tenants' rights has inhibited the growth of the rental market, whose role in recalibrating property prices has thus been much reduced.

High hopes are pinned on the new regulations for China's rental market trial, which is designed to keep at bay further turbulence in the real estate market.