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HOUSING AND LAND
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 the standard rent at pre-war levels, while excluding from control any new or substantially recon- structed buildings.
Following an amendment in December 1975, permitted increases on standard rent were raised to 105 per cent (previously 55 per cent) for domestic premises and 250 per cent (previously 150 per cent) for business premises. They were the first such increases permitted since 1954. A Tenancy Tribunal fixes or determines the amount of rent payable in respect of pre-war premises and deals with other tenancy matters.
Where the landlord incurs expenditure of $5,000 or more on additions or improvements he may, subject to the approval of the Tenancy Tribunal, increase the rent by 20 per cent per annum of the amount expended. Rent increases are also permitted where the landlord bears the rates and the rates liability has been increased.
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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 granting of such an order. The rent control division of the Rating and Valuation Department provides factual information to enable the Tenancy Tribunal to determine the amount of compensation to be awarded to tenants displaced from buildings subject to exclusion order proceedings or from buildings declared dangerous by the Building Authority.
A tenant may also agree to accept compensation from his landlord in return for delivering up vacant possession of his premises, and in this event the premises are excluded from further control. Such agreements must be endorsed by the Commis- sioner of Rating and Valuation and must be in a form approved by him.
There is also 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. Since November 1973, premises which become the subject of such agreements approved by the Tenancy Tribunal are automatically excluded from further control.
Post-War Premises
Legislation affecting the tenure and rents of post-war premises 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 provides five years' security of tenure for tenants of both domestic and business premises who have entered into oral tenancy agreements involving the payment of key money or premia. However, as the payment of key money in such circumstances is no longer prevalent, the legislation has little practical effect.
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