LAND AND HOUSING
99
ordinance was extended to five years. However, the payment of key money in such circumstances, is no longer so prevalent in Hong Kong.
Increases in rent in 1961 and the early part of 1962 resulted in the enactment of the Tenancy (Notice of Termination) Ordinance, now Part V of the Landlord and Tenant (Consolidation) Ordinance, which generally requires landlords seeking posses- sion to give six months' notice of termination.
The first comprehensive legislation affecting post-war domestic premises was the Rent Increases (Domestic Premises) Control Ordinance 1963 which was enacted primarily to control increases in rents and provided a measure of security of tenure. With an increase in the supply of newly completed buildings from 1963 to 1966 the housing position eased and rents stabilised. As a result, this ordinance was allowed to expire in June 1966. For the next three years the situation remained fairly quiet but, with a return of confidence following the disturbances in 1967 and a continuing demand for accommodation, rents by the end of 1969 had taken a sharp upward trend.
While the situation was being considered a temporary measure was enacted in January 1970 to 'freeze' rents. This was closely followed in June by the Rent Increases (Domestic Premises) Control Ordinance 1970, since re-enacted as Part II of the Landlord and Tenant (Consolidation) Ordinance. This ordinance, which follow- ed closely the provisions of the 1963 ordinance, contained a number of exclusions— in particular, larger flats and houses, fresh lettings and lettings in newly constructed buildings were not controlled. The ordinance was due to expire at the end-of May 1974 but because of the continuing upward trend of rents for uncontrolled accom- modation it became necessary, in June 1973, to enact further temporary legislation to extend controls to unprotected tenancies. In December 1973, the 1970 legislation and the temporary ordinance were repealed and replaced by a revised Part II to the Landlord and Tenant (Consolidation) Ordinance which provided security of tenure and controlled increases in rent for the vast majority of tenants and sub-tenants in post-war domestic premises. It does not, however, apply to tenancies in buildings certified for occupation on or after the date of its coming into operation, December 15, 1973. This new legislation is due to expire on December 14, 1976, but may in certain circumstances, where rents have been increased, provide security of tenure beyond that date. In respect of existing tenancies landlords and tenants are free to agree an increase in rent but such agreements must be endorsed by the Commissioner of Rating and Valuation. Where an increase is not agreed the landlord may apply to the Commissioner for his certificate of what increase may be made to the current rent. The amount of this increase is arrived at by taking the difference between the fair market rent, as determined by the Commissioner, and the current rent and dividing by five, subject to a maximum increase of 21 per cent of the current rent if the rateable value of the premises is $30,000 or less.
Where premises become vacant and the landlord wishes to let to a new tenant, the parties are free to agree the rent payable but have to inform the Commissioner. Any such tenancy becomes subject to the provisions of the legislation. The Commis- sioner has wide powers under the ordinance and also issues certificates to assist in