With the average house price now standing at $1.2 million Bermuda's overheated property market is heading for meltdown. Despite incomes which are the envy of most of the world, Bermuda's working population are increasingly being priced out of buying a house or are having to work all hours to reach their goal. With a home ownership rate of just 57 percent Bermuda lags well behind even some less developed countries. In a series starting today The Royal Gazette's Matthew Taylor looks at the problem of getting on the housing ladder and considers some of the solutions.

Housing czar David Burch has revealed radical plans to get people back on the housing ladder by slashing rent for those who save to buy homes.

However tenants at the test-bed Perimeter Lane project will have to mind their manners to cash in on the programme as the Bermuda Housing Corporation vows to clamp down on anti-social behaviour.

Lt. Col. Burch, who co-ordinates Government's housing policy, said BHC wanted to reaffirm its mandate to help people own their own home.

He told The Royal Gazette: "Perimeter Lane is to be our first test case of real affordability in the sense that we expect if we build 38 two-bed units we would anticipate the rent for each one of those would be dramatically different.

"We aim to assess each one of those families income on an individual basis so that a quarter of their real income would be their rent. Those people cannot be on financial assistance or getting aid from anywhere else."

He said tenants would be encouraged to save so they could aspire to eventually move out and buy their own place rather than stay there for generations.

"We would like to use savings as an incentive so they will get a discount. The more they save the greater the discount.

"So people can actually see for themselves within their own family structure a way to get out of the cycle of spinning their wheels unnecessarily.

"It's a novel concept which is going to require heavy subsidising but we think it is worth it."

Plans for the $11 million-plus high rise block near Pembroke Marsh have been put on hold after neighbours objected to its size but Lt. Col. Burch hopes residents can be won over.

He said: "It's not really that many apartments given the amount of real estate that is there.

"There are some other amenities we propose which won't reduce the value of their homes but will enhance it. We want to put in basketball court and a playground."

He said Bermudians weren't used to blocks of such a size and tenants would have to be on their best behaviour.

BHC already counsels some clients on money management and household cleanliness but vetting for tenants at Perimeter Lane will go further.

"We are designing a school, if you like, but potential tenants for Periemeter Lane will have to graduate from this school.

"People aren't going to like it, it might seem a little strange but I think we have to address some of the challenges you are likely to face under this new concept before people move in so people can't say they don't know.

"You create an environment where you the householder are responsible because you, more than anyone else in the community, are getting a deal.

"I would be surprised if any of the average workers in this country only paid a quarter of their salary for rent.

"We are providing a model which hopefully is going to be replicated in other areas where Government provides affordable housing.

"We are trying to raise the bar for families and have them have the ability to see a way out of their dilemma."

Asked how BHC would monitor rising incomes he suggested family income would be assessed every two years.

He said reviving the ability of tenants to buy the BHC property they lived in was on the table but a balance had to be struck as Government could end up with no units left for people who could only afford to rent.

"The key is not to sell it all so you always have affordable stuff within the Government but you also provide the ability to own.

"Certainly in the BHC for the last five years much of the concentration of our mission and mandate has been on the providing of affordable homes to rent.

"But it is also part of our mission to provide home ownership from an affordable perspective.

"That is an area we aim to pursue now we have a clean bill of health.

"We have to address home ownership almost as aggressively as affordable housing ? they are self supporting."