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Wednesday, April 25, 1973

NEW RENT CONTROL PROPOSALS EXPECTED NEXT MONTH

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Proposals for rent control have been formulated and will be

tabled in the Legislative Council next month, the Colonial Secretary,

Sir Hugh Norman-Walker, said today.

Sir Hugh was replying to the Hon. S.Y. Chung who asked whether

Government would take steps to prevent principal tenants from overcharging

sub-tenants.

The Colonial Secretary pointed out that it was an offence under the

Landlord and Tenant Ordinance for the principal tenant to charge more

than the permitted rent.

Sub-tenants who consider that the rent they are paying is excessive

can seek the advice of the Tenancy Inquiry Bureau.

Under the Rent Increases (Domestic Premises) Control Ordinance

both tenancies and sub-tenancies are protected.

If the principal tenant's rent had been increased, he said, he

should apply to the Commissioner of Rating and Valuation for a certificate of

increase in rent before he can raise a sub-tenant's rent by a similar percentage.

In respect of new lettings to sub-tenants of rent controlled post-war

premises, the Colonial Secretary said while it might seem desirable to limit

in a principal tenant to charging only a fair proportion of the controlled ront,

"this would be extremely difficult to supervise and would require a considerable

expansion of professional staff."

He added that generally however the existing rent control legislation had had a restraining effect and principal tenants, if their own rent was restricted, although perhaps charging more than the controlled rent, did not

usually charge a full market rent to sitting sub-tenants.

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