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WEDNESDAY, JUNE 4, 1986
IN 1985 THE TOTAL PRODUCTION OF DOMESTIC UNITS WAS ABOUT 78 000, INCLUDING 30 000 RENTAL UNITS UNDER THE PUBLIC HOUSING PROGRAMME. THE PROJECTED FIGURES FOR 19RE SHOWED SOME 80 000 FLATS BEING PRODUCED THIS YEAR AND A FURTHER 82 000 BEING PRODUCED IN 1987.
+IN VIEW OF THESE CONSISTENTLY HIGH LEVELS OF PRODUCTION, IT CAN BE EXPECTED THAT DOMESTIC RENTS AND PRICES WILL REMAIN STABLE, + HE SAID.
LASTLY, ON WHETHER IN A STABLE MARKET SITUATION THERE WAS ADEQUATE PROTECTION FOR TENANTS SHOULD LANDLORDS TRY TO RAISE RENTS ABOVE MARKET LEVELS, HE POINTED OUT THAT PART IV OF THE LANDLORD AND TENANT (CONSOLIDATION) ORDINANCE PROVIDED A MECHANISM WHICH ENSURED SECURITY OF TENURE PROVIDED THAT THE TENANT WAS PREPARED TO PAY A FAIR MARKET RENT AND ALLOWED WHAT WAS A FAIR MARKET RENT TO BE DETERMINED BY AN INDEPENDENT TRIBUNAL.
MR TODD SAID THAT IN VIEW OF THIS SITUATION GOVERNMENT NOW PROPOSED TWO FURTHER STEPS TO RAISE THE LEVEL OF CONTROLLED RENTS.
THE FIRST PROPOSAL AFFECTING POST-WAR TENANCIES WERE COVERED BY PART II OF THE ORDINANCE.
THE RENT CONTROL MECHANISM FOR REGULATING RENT INCREASES ENTAILED THE SETTING OF A MINIMUM PERCENTAGE LEVEL OF PREVAILING MARKET RENT TO BE REACHED BY ALL CONTROLLED RENTS.
MR TODD SAID THAT DESPITE PROGRESSIVE INCREASES TO THIS MINIMUM LEVEL ABOUT HALF OF THE CONTROLLED TENANCIES STILL ENJOYED RENTS BELOW 60 PER CENT OF MARKET LEVELS AND ABOUT ONE-THIRD PAID LESS THAN HALF.
IT WAS THEREFORE PROPOSED TO RAISE THE REQUIRED MINIMUM LEVEL FROM 55 PER CENT TO 60 PER CENT OF PREVAILING MARKET RENT WITH EFFECT FROM DECEMBER 19 THIS YEAR.
HE SAID THAT THE EFFECT WOULD BE THAT SOME 26 000 LOWER RENT TENANCIES, OUT OF THE 105 000 PROTECTED TENANCIES, WOULD BE SUBJECT TO RENT INCREASES, WHICH COULD BRING THEIR RENTS UP TO 60 PER CENT OF MARKET LEVELS. THE AVERAGE RENT INCREASE WOULD BE $568 PER MONTH OR 46 PER CENT OF THEIR CURRENT RENT.
+EVEN WITH THIS INCREASE SUCH TENANTS, WHO HAVE LONG ENJOYED PROTECTION AND LOW-CONTROLLED RENTS, WOULD CONTINUE TO PAY LESS THAN NEW TENANTS FOR COMPARABLE PREMISES, + MR TODD SAID.
THE REMAINING 79 000 PROTECTED TENANCIES, HE ADDED, WOULD REMAIN SUBJECT TO A MAXIMUM BIENNIAL INCREASE OF 30 PER CENT ON CURRENT RENT. PROVIDED THAT THIS INCREASE DID NOT TAKE THE RENT ABOVE PREVAILING MARKET LEVELS.
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