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WEDNESDAY, DECEMBER 8, 1976
INCREASE IN RENTS OF PRE-WAR BUILDINGS PROPOSED
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IT IS GENERALLY AGREED THAT PART ONE OF THE LANDLORD AND TENANT (CONSOLIDATION) ORDINANCE, WHICH CONTROLS THE RENTS OF PRE-WAR PREMISES, FAVOURS TENANTS TO AN EXCESSIVE DEGREE AT THE EXPENSE OF OWNERS OF THESE PROPERTIES.
THIS WAS STATED BY THE SECRETARY FOR HOUSING, THE HON. IAN LIGHTBODY, WHEN HE MOVED THE SECOND READING OF THE LANDLORD AND TENANT (CONSOLIDATION) (AMENDMENT) (NO. 2) BILL 1976 IN THE LEGISLATIVE COUNCIL TODAY.
AS A FIRST STEP IN CORRECTING THIS IMBALANCE, HE SAID, A MODEST INCREASE IN THE RENTS OF PRE-WAR PREMISES WAS ALLOWED IN JANUARY THIS YEAR.
SPEAKING ON THE BILL, WHICH PROPOSES FURTHER INCREASES IN THE PERMITTED RENTS OF PRE-WAR PREMISES. HE SAID: +AVERAGE NON-DOMESTIC RENTS ARE ABOUT $280 PER FLOOR, AND THE AVERAGE MONTHLY INCREASE PERMITTED WILL BE ABOUT $78 IN A PRE-WAR TENEMENT BUILDING, AND GENERALLY NO HIGHER THAN $100.+
MR. LIGHTBODY SAID THAT THE RESULTANT AVERAGE RENT FOR NON-DOMESTIC TENANCIES WOULD THEN BE ONLY 26 PER CENT OF THE FAIR MARKET RENT.
+THERE IS NO REASON WHY PROPERTY OWNERS SHOULD SUBSIDISE COMMERCIAL OR INDUSTRIAL ACTIVITIES, HE ADDED.
FOR DOMESTIC PREMISES, HE POINTED OUT, RENTS WOULD BE INCREASED BY ABOUT $28 A MONTH FOR A TENEMENT FLOOR ON A PRESENT AVERAGE RENT OF $148, AND GENERALLY INCREASES WERE UNLIKELY TO EXCEED $40. THE RESULTANT RENT WOULD STILL BE ONLY 30 PER CENT OF FAIR MARKET RENTS.
+THIS VERY SMALL INCREASE SHOULD NOT CAUSE HARDSHIP PARTICULARLY AS MANY OF THESE TENEMENT FLOORS ARE SHARED BY SEVERAL FAMILIES, SO THAT THE AVERAGE MONTHLY INCREASE IS LIKELY TO BE $7 PER FAMILY, + MR. LIGHTBODY STRESSED.
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