98

LAND AND HOUSING

Several large-scale exercises were carried out to clear squatter blackspots, moving the occupants from these unsanitary conditions to the better environment of the new- type licensed areas until such time as they can be offered permanent public housing.

Rent Control

Legislation controlling rents of pre-war premises and providing security of tenure was instituted by proclamation immediately after the war and was later embodied in 1947 in the Landlord and Tenant Ordinance-since re-enacted as Part I of the Landlord and Tenant (Consolidation) Ordinance. This legislation applies to both domestic and business premises and restricts rents by reference to pre-war levels, while excluding from control any new or substantially reconstructed buildings. Following an amendment in 1953, permitted increases in standard rents were raised to 55 per cent for domestic premises and 150 per cent for business premises, at which level they have remained ever since.

There is provision in the legislation for exclusion of pre-war premises where redevelopment is intended. Exclusions are made on the recommendation of a Tenancy Tribunal, by order of the Governor, and the payment of compensation to tenants dispossessed is almost invariably a condition of the grant of such an order. During 1974 a total of 154 exclusion orders were approved, involving 384 buildings. A tenant may also agree to accept compensation from his landlord in return for delivering up vacant possession of his premises. Such agreements must be endorsed by the Com- missioner of Rating and Valuation and must be in a form approved by him. Under this provision 661 agreements were endorsed during 1974.

There is a provision for a landlord and tenant, or a prospective landlord and tenant, to agree a rent in excess of the permitted rent for a period not exceeding five years, but agreements must be approved by a Tenancy Tribunal. Premises which, since November 1973, have become the subject of such agreements approved by the Tenancy Tribunal are automatically excluded from further control.

A Tenancy Inquiry Bureau with two offices, one on Hong Kong Island and the other in Kowloon, assists rent control legislation by providing factual information to Tenancy Tribunals in respect of exclusion proceedings, where pre-war premises are declared dangerous by the Building Authority. This may also involve the payment of compensation. Assistance is also given to other government departments where pre- war premises are being acquired for public purposes. In addition, the bureau provides general advice and assistance on tenancy matters and has an important mediatory role between parties involved in tenancy disputes. During 1974 the Tenancy Inquiry Bureau was transferred from the Home Affairs Department to the Rating and Valua- tion Department.

In respect of post-war premises, legislation dates back to 1952 with the Tenancy (Prolonged Duration) Ordinance, since re-enacted as Part IV of the Landlord and Tenant (Consolidation) Ordinance. This legislation gave limited security of tenure to certain tenants who had entered into oral tenancy agreements involving the pay- ment of key money or premia. In 1963 the three year security provided by this

Share This Page