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TU.
15, 1985
AT PRESENT, SOME 107 000 SUBJECT TO PART II CONTROLS. AFFECTED BY THE PROPOSAL AND TENANCIES.
WHOLLY-LET DOMESTIC UNITS ARE OF THESE, NEARLY 1 400 WILL BE TWO-THIRDS OF THEM ARE CORPORATE
+ THE IR RENTS ARE ALREADY CLOSE TO THE PREVAILING MARKET RENT (PMR),+ THE SPOKESMAN SAID, AND RENT CONTROL IS OF LITTLE SIGNIFICANCE TO THEM.+
RAISING OF MINIMUM PERCENTAGE COMPONENT
THE BILL PROPOSES TO RAISE, WITH EFFECT FROM DECEMBER 19 THIS YEAR, THE MINIMUM PERCENTAGE COMPONENT IN THE RENT INCREASE MECHANISM IN PART II FROM 45 PER CENT TO 55 PER CENT OF PMR, TO BE REACHED BY ALL CONTROLLED RENTS.
THE SPOKESMAN SAID THAT AS PART OF THE REVIEW COMMITTEE'S RECOMMENDED STRATEGY OF PROGRESSIVE DECONTROL IN THE SHORTEST POSSIBLE TIME, THE PROPOSAL IS THAT THE COMPONENT BE INCREASED IN ORDER TO BRING EXCEPTIONALLY LOW RENTS UP TO THE GENERAL LEVELS OF CONTROLLED RENTS SO THAT RENT CONTROL CAN BE PHASED OUT WITHIN A REASONABLE SPAN OF TIME.
THIS INCREASE WOULD AFFECT THOSE TENANTS WHO ARE CURRENTLY PAYING VERY LOW CONTROLLED RENTS (BELOW 43 PER CENT OF PMR) AND HAVE IN FACT BEEN PROTECTED FOR A LONG TIME. EVEN THEN THEY WILL CONTINUE TO PAY SIGNIFICANTLY LESS THAN NEW TENANTS FOR COMPARABLE PREMISES.
INCREASE IN PERMITTED RENT OF PRE-WAR DOMESTIC PREMISES
ANOTHER PROVISION IN THE BILL IS THE PROPOSAL TO INCREASE THE PERMITTED RENTS OF PRE-WAR DOMESTIC PREMISES.
THE SPOKESMAN RECALLED THAT RENTS OF PRE-WAR DOMESTIC PREMISES ARE CONTROLLED BY REFERENCE TO THOSE PAYABLE AS AT DECEMBER 25, 1941 TERMED THE STANDARD RENT+. WHEN MULTIPLIED BY A FACTOR THIS GIVES THE PERMITTED RENT, PROVIDED IT DOES
THE BILL SEEKS TO RAISE NOT EXCEED THE PREVAILING MARKET RENT.
THE FACTOR FROM LAST YEAR'S FIGURE OF 21 TO 27.
EXCLUDING RURAL VILLAGE HOUSES, THERE ARE SOME 2 500 PRE-WAR DOMESTIC UNITS EFFECTIVELY UNDER CONTROL AS AT JANUARY 1, 1985. RAISING THE FACTOR FROM 21 TO 27 WOULD RESULT IN AN AVERAGE INCREASE OF ABOUT 29 PER CENT, OR $234 PER MONTH, ON CURRENT PERMITTED RENTS, BRINGING SUCH RENTS TO ABOUT 55 PER CENT OF PMR.
IF APPROVED, THIS PROPOSAL WOULD TAKE EFFECT FROM JULY 1, 1985.
/OTHER AMENDMEN'