Government announced several measures aimed at improving provision of affordable housing on the Island yesterday.

Tax incentives for landlords to reduce rents and the introduction of interest-free down payment loans for 500 families were among the Throne Speech announcements.

Describing shelter as an "essential need" of society, the Speech announced: "To this end, the Government will encourage community partnership in the provision of shelter by launching an incentive programme for landlords to bring affordable housing units back onto the market.

"This will be accomplished through the provision of tax incentives. Renting, however, is not the panacea. Bermudians should be homeowners.

"To encourage homeownership, the Government will provide interest-free down payment loans for 500 qualified Bermudian families who have the ability to sustain a reasonable mortgage."

The proclamation read: "Others too will be given a meaningful opportunity to work towards homeownership.

"The Government will draft legislation to support its 'rent geared to income' initiative which allows individuals living in Government-owned facilities to have their rent set at no more than 25 percent of their income, and cause an additional ten percent of their income to be saved towards future homeownership."

The affordable housing scheme will also be extended to other locations.

The Throne Speech announced: "Following the January 2008 delivery of the first 21 units at Loughlands, the Government will work with its private sector partner to commence the second phase of construction which is targeted to move an additional 21 new home owners into the premises prior to the end of the same year.

"The Government will develop three purpose-built facilities at Southside, St. David's, designed specifically for family groups who have been housed in emergency facilities for extended periods."