HOUSING AND LAND
105
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
turn.
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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 Land- lord and Tenant (Consolidation) Ordinance. This ordinance, which followed 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 in rents for uncontrolled accommodation it became necessary, in June 1973, to enact further temporary legislation to extend controls to unprotected domestic 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 In December 1973, the 1970 legislation and the temporary ordinance were repealed and replaced by a revised Part II to the Landlord and Tenant (Consolidation) Ordinance.
This legislation, and its subsequent amendments, provides security of tenure and controls increases in rents for the vast majority of tenants and sub-tenants in post- war domestic premises in the private sector. It does not, however, apply to tenancies in buildings certified for occupation after December 14, 1973. Tenancies held in the names of public bodies, corporations, foreign or Commonwealth governments, partnerships or firms are also excluded, as are tenancies entered into after December 31, 1975 for a term of three years or more. This legislation, which was due to expire on December 14, 1976, has been extended up to December 14, 1979.
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 Commis- sioner 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 four (five prior to 1976). This is 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. However, the factor is variable and can be altered by resolution of the Legislative Council to suit a changing rental situation. Increased rates charges may be passed on to tenants and sub-tenants. Where the landlord incurs expenditure of $5,000 or more on improvements the rent may be increased by 20 per cent per annum of the amount expended.