124
HOUSING
Valuation to certify the user of the premises, the standard rent and the prevailing market rent.
There is provision in the legislation for the exclusion from control of premises for the purpose of redevelopment, and generally possession is subject to the payment of compensa- tion to the protected tenants. Jurisdiction under Part I is exercised by the Lands Tribunal while technical functions are performed by the Commissioner of Rating and Valuation.
Post-war Premises
Comprehensive rent control legislation affecting post-war domestic premises in the private sector has been in force in one form or another since 1963 - apart from the period between 1966 and 1970 - and is now embodied as Part II of the Landlord and Tenant (Consolida- tion) Ordinance.
=
The legislation, which provides security of tenure and controls 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 to new lettings created on or after June 10, 1983, nor - with effect from December 19, 1983 to tenancies of premises having a rateable value of $50,000 or above.
—
Under the legislation, 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 the increase is arrived at by taking half the difference between the current rent and the prevailing market rent. This is further subject to a maximum increase of 30 per cent of the current rent but where, after December 18, 1983, the increase so determined results in a new rent being less than 30 per cent of the prevailing market rent, an increase to bring the current rent up to 30 per cent of the prevailing market rent is allowed. Increases, except by agreement, are permitted only once every two years. Increases in rent for sub-tenancies are dealt with in the same way as tenancies. Both landlord and tenant are at liberty to apply to the commissioner for a review of his certificate and further to appeal to the Lands Tribunal against the commissioner's review.
For domestic tenancies outside these controls, Part IV of the Landlord and Tenant (Consolidation) Ordinance provides a measure of security of tenure for a sitting tenant who wishes to renew his tenancy and who is prepared to pay the prevailing market rent on renewal. Under these provisions a new tenancy must be granted unless the landlord can satisfy the Lands Tribunal that he requires the premises for his own occupation or that he intends to rebuild the premises, or on one of the other grounds specified in the legislation. The parties are free to agree on the rent and terms for the new tenancy but failing agreement they can apply to the Lands Tribunal for a determination. This scheme is intended as a permanent framework regulating the relationships of landlords and tenants for nearly all domestic tenancies not otherwise subject to the Part I or II controls.
: