Hong Kong's main provider of subsidised rental homes is looking to shake up its rules for ensuring that cheap flats only go to people who need them, sources said on Tuesday.

The Housing Authority plans to tighten declaration rules for well-off tenants, including requiring them to state every two years whether they own any property – to see whether they are still eligible for a subsidised home. At present, such declarations are only needed every 10 years.

Under the proposals, tenants deemed no longer eligible for a public flat would only have a four-month grace period after being warned they are at risk of eviction – down from one year at present.

Those evicted could also face a longer ban from applying for public housing again.

The proposals are to be discussed by the authority's subsidised housing committee on Wednesday, sources said.

The authority launched a review of the system following reports that a suspect in the recent murder of socialite Abby Choi bought a government-subsidised flat despite also owning a luxury property.