FRIDAY, NOVEMBER 7, 1975
REVISIONS OF RENT CONTROL LEGISLATION PROPOSED
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PROPOSED LEGISLATION WHICH WILL PERMIT INCREASES IN RENTS OF PRE-WAR PREMISES FOR THE FIRST TIME IN OVER 20 YEARS, WILL SOON BE INTRODUCED IN THE LEGISLATIVE COUNCIL.
THE PROVISION IS CONTAINED IN THE LANDLORD AND TENANT (CONSOLIDATION) (AMENDMENT) (NO. 4) BILL, PUBLISHED IN TODAY'S GAZETTE, AND IS SCHEDULED TO COME INTO EFFECT NEXT YEAR.
ALTHOUGH THE BILL ALLOWS FOR AN INCREASE OF UP TO 40 PER CENT IN RESPECT OF RENTS FOR SHOPS AND NON-DOMESTIC PREMISES, IN PRACTICE THE AVERAGE INCREASE WILL AVERAGE ONLY ABOUT 24 PER CENT FOR SHOPS AND NO MORE THAN EIGHT PER CENT FOR NON-DOMESTIC PREMISES.
+THE ACTUAL PERCENTAGE INCREASES WILL GENERALLY BE LOWER BECAUSE THE PRESENT RENTS FOR MANY SUCH PREMISES ARE ALREADY HIGHER THAN THE CURRENT PERMITTED RENTS,+ A SPOKESMAN FOR THE RATING AND VALUATION DEPARTMENT EXPLAINED.
+FURTHERMORE, WHERE THE RENT BEING PAID IS EQUAL TO OR MORE THAN THE NEW PERMITTED RENT, A TENANT WILL NOT BE OBLIGED TO PAY ANY INCREASE WHATSOEVER, HE ADDED.
THE SPOKESMAN POINTED OUT THAT THE PERMITTED RENTS OF MANY SHOPS AND NON-DOMESTIC PREMISES WERE LESS THAN ONE-EIGHTH OF THE CURRENT FAIR MARKET RENT.
+NOTWITHSTANDING, THESE PROTECTED SHOPKEEPERS AND BUSINESS FIRMS TRADE ON EQUAL TERMS WITH TENANTS OF POST-WAR PREMISES, AND THERE IS NO EVIDENCE TO SUGGEST THAT THE BENEFIT OF THEIR HIGHLY PRIVILEGED POSITION IS PASSED ON TO THE CONSUMER,+ HE SAID.
FOR A TYPICAL SHOP IN A TENEMENT BUILDING HAVING A PERMITTED RENT OF $185 PER MONTH THE INCREASE WOULD BE $74 PER MONTH. HOWEVER, THE AVERAGE RENT KNOWN TO BE PASSING FOR SUCH PREMISES, HE SAID, IS NEARER $300 PER MONTH, WHILE THE ESTIMATED AVEŘAGE FAIR MARKET RENT IS PUT AT ABOUT $1,600 PER MONTH.
THE BILL ALSO PERMITS A SMALLER INCREASE FOR DOMESTIC PREMISES.
IN PERCENTAGE TERMS, THE INCREASE ALLOWED WILL BE 32 PER CENT BUT, AS ACTUAL RENTS TODAY ARE GENERALLY SUBSTANTIALLY HIGHER, THE PERMITTED INCREASE WILL BE MUCH * LOWER THAN THIS.
/FOR EXAMPLE