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HOUSING
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extensive consultation with property developers and relevant professional bodies these recommendations. In general, they supported the spirit of the recommendations, although there were comments on the proposed level of penalty for breaches. The government has studied these comments carefully and aims to introduce appropriate legislation in 1998.
Rent Control
Statutory controls date from 1921 and the tenants of most domestic premises are afforded security of tenure under the Landlord and Tenant (Consolidation) Ordinance. Rent levels are also controlled in tenancies in pre-war domestic premises and in post-war domestic premises completed before June 19, 1981 (but not new lettings created on or after June 10, 1983, nor tenancies of premises with a rateable value of $30,000 or more as at June 10, 1983). Other domestic tenancies receive security of tenure, provided the tenant is prepared to pay the prevailing market rent. The legislation originally provided for controlled rents to be increased progressively up to market levels so that rent control could be removed by the end of 1996. However, the Legislative Council passed a resolution in December 1996 to extend rent control for two years, lower the permitted rent levels from 90 per cent of the prevailing market rent to 80 per cent, and lower the maximum rent increase from 30 per cent to 20 per cent. Rent control is due to be phased out after December 31, 1998. The provision for security of tenure will, however, continue to apply after the expiry of rent control. Unless a tenant voluntarily vacates the premises, a landlord must apply on specified grounds and obtain an order from the Lands Tribunal before he can recover possession. Penalties are prescribed for harassment of a protected tenant with intent to induce him to leave. Provisions exist to facilitate an agreed surrender by the tenant of his protected tenancy in exchange for a consideration.
The Rating and Valuation Department administers the Ordinance and publishes explanatory pamphlets to help people understand their position in relation to the legislation. It provides an advisory and mediatory service to handle the many practical problems arising from rent controls. Its Rent Officers also answer enquiries on landlord and tenant matters in district offices.
As part of an overall review of the ordinance, it is intended to raise penalties against harassment and unlawful eviction to ensure sufficient deterrent.
Public Rental Housing
About 704 300 flats are available for public rental housing. It is the government's policy to ensure that these flats are allocated only to families in genuine need. The average waiting time for a public rental flat is six and a half years. The government has pledged to reduce this to under five years by 2001 (almost a 50 per cent improvement on 1990 where the waiting time was nine years), to four years by 2003 and to three years by 2005.
Rent Policy
Rents for domestic units in the public sector are based on tenants' ability to pay. Tenants may choose to live in the minimum space standard of 5.5 square metres per person internal floor area (IFA) at a median rent-to-income ratio not exceeding 15 per cent, or seven square metres per person IFA at a median rent-to-income ratio not