Young Earners on the Target of Housing for All by 2022
Housing for All by 2022 Scheme, which has boosted the demand for affordable houses, targets the young adults of LIG Urban families, as they can get loans at lower rates to buy own home.
As per the Eligibility Criteria for Pradhan Mantri Awas Yojana (PMAY) any young earning member, married or unmarried or single, can be treated as a separate household, provided he/she does not own a pucca house, according to amendments to PMAY approved by Ministry of Housing and Urban Poverty Alleviation. Earlier, the Scheme allowed interest benefits for only one house per family comprising a couple and unmarried children.
By this more families will be allowed to get the benefits of Credit Linked Subsidy Scheme (CLSS) and can boost the construction of affordable housing. Nearly a quarter of those aspiring to buy homes are under 35 years live with parents and will move out to a new house in the next two to five years, according to a 2016 report by real estate services provider CBRE India. 65% went to buy a property without compromising on the quality of life.
Nuclear families, urban growth and affordability will boost demand, India Ratings. The low-cost housing category could grow four-fold into a Rs 6-lakh-crore opportunity by 2022.
RERA Brings the clarity
The amendments have also changed the definition of carpet area to match with that in the Real Estate Regulation Act, the law that makes builders accountable for what they promise homebuyers and brings all stakeholders under its ambit. Carpet area includes usable spaces.
It is good that this clarification has been issued at an early stage of PMAY, otherwise conflicts in definition always cause disputes later.
The scheme was initially meant to cover people with income of up to Rs 6 lakh and has now been widened to include those earning thrice as much. The guidelines have included houses in new areas notified by urban development authorities. Which means, people outside the limits of urban bodies could also get the benefits.