Hong Kong public housing tenants who already own a property will be banned from buying a subsidised home, sources have revealed.

The move came after the former father-in-law of murdered model Abby Choi Tin-fung sparked a government review when it was found he had bought a subsidised flat, despite already having a large home in an upmarket area.

Sources on Tuesday said the proposed restriction was designed to help cope with increased demand for subsidised housing and in the wake of the exposure of the loophole that allowed buyers with a private home to buy a subsidised flat.