The Government ensures that all those who cannot afford private rental accommodation have access to subsidized public rental housing. Rents are set at affordable levels. During the year, new legislation was passed to provide a more flexible framework that allows both upward and downward adjustment of rents according to changes in tenants’ household income. The new law will come into effect on January 1, 2008. In December 2007, the total housing stock in Hong Kong amounted to 2 483 700 flats, comprising 711 300 public rental housing flats1, 397 900 subsidized home ownership flats, and 1 374 500 flats in the private sector. About 30 percent of Hong Kong’s population live in public rental housing flats with another 18 per cent in subsidized home ownership flats.