HOUSING
tenure will, however, continue to apply. Unless a tenant voluntarily vacates the premises, a landlord must apply on certain specified grounds and obtain an order from the Lands Tribunal before he can recover possession. Heavy penalties are prescribed for harassment of a protected tenant with intent to induce him to leave. Provisions exist though to facilitate an agreed surrender by the tenant of his protected tenancy in exchange for a consideration. The Rating and Valuation Department publishes explanatory pamphlets to help people understand their position in relation to the legislation. It provides an advisory and mediatory service to deal with the many practical problems arising from rent controls. It also operates a scheme under which rent officers attend district offices on certain days each week to deal with referred cases and answer enquiries on landlord and tenant matters.
Pre-war Premises
Legislation controlling rents and providing security of tenure for pre-war premises was introduced immediately after World War Two. It is presently contained in Part I of the Landlord and Tenant (Consolidation) Ordinance.
Part I previously applied to both domestic and business premises, but from July 1, 1984, it has applied only to domestic premises. Substantially reconstructed buildings are, how- ever, excluded.
Rents under Part I are controlled by reference to the standard rent of the premises (that is, the rent payable, on an unfurnished basis, on or most recently before December 25, 1941) and the prevailing market rent. The rent lawfully chargeable under the ordinance is the permitted rent, which cannot exceed the prevailing market rent of the premises.
In order to implement the policy of phasing out rent controls, the legislation allows permitted rents to be progressively increased. With effect from July 1994, the permitted rent was increased from 55 to 65 times the standard rent of the premises. The multiplier will be further increased to 75 in July 1995 and to 85 in July 1996. Additionally, the legislation provides that the new rent shall not be less than a specified percentage of the prevailing market rent. The minimum percentage, initially set at 60 per cent, was adjusted upwards to 70 per cent in July 1994 and will be increased to 80 per cent in July 1995, and to 90 per cent in July 1996. The Commissioner of Rating and Valuation is empowered to certify the standard rent and the prevailing market rent.
The legislation provides for premises to be excluded from control if they are to be redeveloped, and generally, possession is subject to compensation being paid 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 legislation to control rent increases in post-war domestic premises has been in force since 1963 except for the period between 1966 and 1970. This is now contained in Part II of the Landlord and Tenant (Consolidation) Ordinance.
Part II controls rent increases and provides security of tenure to tenancies and sub- tenancies in post-war domestic premises completed or substantially rebuilt after August 16, 1945 and before June 19, 1981. It does not, however, apply to new lettings created on or after June 10, 1983, or to tenancies of premises having a rateable value of or above $30,000 as at June 10, 1983.
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