LAND AND HOUSING
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been of great value for the parties are usually reluctant to go to court and still more reluctant to testify in public against their closest neighbours. The staff of the bureaux handled 595 of these disputes during 1963.
The Tenancy (Prolonged Duration) Ordinance of 1952 gave limited security of tenure to certain tenants of new buildings who entered into verbal tenancy agreements often involving quite sub- stantial lump sum payments. On 10th May 1963, the three-year security under this ordinance was extended to five years for new tenancies commencing after 1st July 1963.
Increases in rents in 1961 and in the early part of 1962 resulted in the enactment of the Tenancy (Notice of Termination) Ordin- ance which came into force on 14th April 1962. Because many tenancies are monthly on a word of mouth basis, this ordinance (with certain exceptions) extended the period required for termina- tion of a tenancy to six months' written notice. It drew no distinction between business and domestic tenancies and was designed to curb rising rents. The ordinance was amended in October 1962 so that tenancies affected by it enjoyed security of tenure up to 30th June 1963. At about the same time, Govern- ment's proposals for rent increase control on certain domestic premises were made known. If landlord and tenant do not wish to be tied down by the six months' notice to quit, there is provision under this ordinance whereby short-term agreements may be entered into subject to ratification by the Secretary for Chinese Affairs. A total of 740 such agreements was ratified during the year.
The Rent Increases (Domestic Premises) Control Ordinance became law on 30th March 1963. It deals with rent increase con- trol rather than rent control and does not apply to initial lettings. Landlords and tenants are also free to agree to any increase in rent but such agreements require endorsement by the Commissioner of Rating and Valuation. No increase in rent is allowed, other than by agreement, in the two years following commencement of a tenancy or in the two years after an increase in rent; and, where rent is increased, security of tenure for two years (subject to ordinary tenancy requirements being met) is assured. The Ordin- ance expires on 30th June 1965, though its effect will be somewhat prolonged in cases of tenancies where rent was increased after