More people in the low-income group will be able to own houses as the government is to build more 1Malaysia People Friendly Homes (RMR1M) next year, said Prime Minister Datuk Seri Najib Tun Razak.

He announced the good news after launching the 'RMR1M - 10,000 Hasrat Satu Impian' housing initiative at the Youth Land Scheme in Kampung Bukit Changgang here today.

Najib said that in Budget 2017 he had announced that the government would build 5,000 RMR1M units next year.

"I told the SPNB (Syarikat Perumahan Negara Berhad) chairman that the government is prepared to increase the number of these (RMR1M) houses because of very encouraging response and many applications from people who want to own homes," he said to reporters after launching the RMR1M initiative.

Urban Well-being, Housing and Local Government Minister Tan Sri Noh Omar, Education Minister Datuk Seri Mahdzir Khalid and SPNB chairman Datuk Dr Abdul Latiff Ahmad were also present at the launch.

Najib said the RMR1M programme implemented by SPNB was so popular that 10,000 units of houses were launched today.

"Since the programme was started in 2002, about 36,000 units of house have been built, with the government providing a direct subsidy of RM20,000 and financing subsidy of about RM11,000.

"This means that for every unit that costs RM65,000, the government subsidy is RM31,000," he said.

The condition for an applicant of the RMR1M home is that the individual must own land.

On the monthly payments, Najib said the successful applicants had to pay RM150 but following a revamp of the housing scheme in 2015, they were required to pay RM230 but with a low interest rate.

"In 25 years, the applicant will become the owner of the house upon paying up the loan," he said.

Najib said that besides benefiting the low-income people, the RMR1M initiative benefited Class F bumiputera contractors, suppliers of building materials and legal firms.

Earlier, the Prime Minister chatted with the residents and visited the houses of two owners of the RMR1M homes in the village.

One of the owners is Sharil Mohd Sharif, a livestock breeder with a monthly household income of RM1,900, and the other Haizum Mohd Rudin, a school administrative assistant whose monthly household income is RM2,822.