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Wednesday, June 6, 1973
LONG TERM MEASURES FOR LETTING PRIVATE DOMESTIC ACCOMMODATION
A new scheme will be introduced later this summer to provide
for "moderate and acceptable" increases in rent in return for security of tenure.
This was announced today in the Legislative Council by the Acting
Colonial Secretary, the Hon. M.D.A. Clinton, when moving the second reading of the Domestic Premises (Tenure and Rent) (Temporary Provisions) Bill 1973.
The bill is designed as an interim measure and imposes a temporary freeze on rent increases for all domestic premises, pending the introduction
and implementation of substantive legislation later this year.
The provisions of the bill apply to all domestic tenancies and
sub-tenancies no matter what their rateable value and irrespective of written
agreements which purport to exclude the provisions of the bill.
Commenting on the longer-term measures to be introduced later this
year, Mr. Clinton said they were designed to bring about "a more orderly and
generally acceptable framework for the letting of private domestic accommodation."
In particular, rents which had been controlled at a low level would
be able to move towards a "fair market rent" at a faster pace than those which
were closer to market levels, he said.
He explained that, despite new construction, rents for property not
subject to the restraints of the 1970 rent controls had moved upwards during the
last two years and, in some cases, had "skyrocketed to absurd heights."
"On the other hand, rents of premises which are controlled by the 1970 Rent Increases Control legislation have been held down, in some cases, to
unrealistically low levels."
Last year, he went on, there were indications that the supply of flats
was catching up with demand, and it was hoped that by the time the existing rent
control expired the situation would have stabilised.
/However,