118
HOUSING AND LAND
exclusion is redevelopment and generally possession is subject to the payment of compensa- tion to the protected tenants. The Rating and Valuation Department provides a mediatory and advisory service to deal with many of the practical problems arising from these controls, particularly where exclusion proceedings are started or where buildings are declared dangerous by the Building Authority, to ensure that tenants and sub-tenants understand their rights. In addition, the department administers a Rent Officer Scheme, under which rent officers attend city district offices in the urban areas and district offices in the New Territories on set days each week to deal with referred cases and to answer enquiries on landlord and tenant matters relating to both pre-war and post-war premises.
Rent Control of Post-war Premises
Comprehensive legislation affecting post-war domestic premises in the private sector has been continuously in force in one form or another since 1962 (apart from between 1966 and 1970) and is now embodied as Part II of the Landlord and Tenant (Consolidation) Ordinance. An overall re-examination of the legislation was conducted by a committee of review during 1980. Its report, published in May 1981, recommended that as soon as circum- stances permit, rent control should be phased out. This recommendation was endorsed in principle by the government, although this was recognised as a long term objective.
To implement initially the report's recommendations, a series of legislative amendments were enacted during the year. As a result, Part II of the ordinance, which should have expired after December 18, 1981, was extended by a further two years. The legislation, which mainly provides security of tenure and controls of rent increases, now covers the majority of tenancies and sub-tenancies in post-war domestic premises in the private sector. It does not, however, apply to tenancies in buildings first certified for occupation after June 18, 1981, nor, with effect from December 19, 1981 to tenancies in premises having a rateable value of $80,000 or more. Provision is also made to exclude from these controls from December 19, 1982 tenancies in premises having a rateable value of $60,000 or above. Guidelines are now provided for determining applications for possession in cases where a landlord intends to rebuild.
Landlord 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 the increase is arrived at by taking half the difference between the fair market rent and the current rent. This is further subject to a maximum increase of 30 per cent of the current rent and increases are permitted only once every two years. Under the amended legislation, increases in rent for sub-tenancies are now dealt with in the same way as tenancies.
Other Measures Affecting Landlords and Tenants
For domestic tenancies outside the controls, legislation was introduced towards the end of the year to provide a reasonable degree of security of tenure for a sitting tenant who wishes to renew his tenancy. Under this provision, a new tenancy will be granted unless the landlord can satisfy the Lands Tribunal that he requires the premises for his own occupation, or that he intends to re-build the premises, or on one of the other grounds specified in the legislation. The parties are free to agree on the rent for the new tenancy but failing agreement they can apply to the Lands Tribunal for a determination. This legislation is intended to establish a permanent framework regulating the relationships of landlords and tenants for nearly all domestic tenancies not otherwise subject to controls.