THURSDAY, JUNE 18, 1987
FURTHER MEASURES ON RENT CONTROL PROPOSED
THE GOVERNMENT HAS PROPOSED FURTHER MEASURES ON RENT CONTROL FOLLOWING AN ANNUAL REVIEW OF THE WORKING OF THE LANDLORD AND TENANT [CONSOLIDATION) ORDINANCE AND AN ASSESSMENT OF MARKET CONDITIONS DURING 1986.
THESE MEASURES, WHICH WILL BE INTRODUCED INTO THE LEGISLATIVE COUNCIL ON JULY 8, INCLUDE:
INCREASE FROM 30 TO 35 TIMES THE STANDARD RENT PERMITTED RENT OF PRE-WAR DOMESTIC PREMISES; AND
FOR THE
THE EXTENSION BY TWO YEARS OF THE LIFE OF PART II OF THE LANDLORD AND TENANT (CONSOLIDATION) ORDINANCE FROM DECEMBER 19, 1987 TO DECEMBER 18, 1989.
IN ANNOUNCING THE PROPOSED INCREASE IN PERMITTED RENT OF PRE-WAR DOMESTIC PREMISES, A GOVERNMENT 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 THAT IT DOES NOT EXCEED THE PREVAILING MARKET RENT. THE PROPOSED INCREASE RAISES THE FACTOR FROM LAST YEAR'S 30 TO 35.
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EXCLUDING RURAL VILLAGE HOUSES, THERE ARE SOME 1,860 PRE-WAR DOMESTIC UNITS EFFECTIVELY UNDER CONTROL AS AT THE END OF 1986. RAISING THE FACTOR FROM 30 TO 35 WOULD RESULT IN AN AVERAGE INCREASE OF ABOUT 17 PER CENT OR $190 PER MONTH, ON CURRENT PERMITTED RENT, BRINGING SUCH RENTS TO ABOUT 70 PER CENT OF PREVAILING MARKET RENT.
IF APPROVED BY THE LEGISLATIVE COUNCIL, THIS PROPOSAL WILL TAKE EFFECT ON JULY 10 WHEN IT WILL BE GAZETTED.
AS REGARDS THE EXTENSION OF PART II, THE SPOKESMAN SAID PART II OF THE ORDINANCE IS DUE TO EXPIRE ON DECEMBER 18, 1987.
HE POINTED OUT THAT THE PROPOSED EXTENSION OF THE LIFE OF PART II BY TWO YEARS WILL CONTINUE THE DUAL PROTECTION OF RENT CONTROL AND SECURITY OF TENURE TO ABOUT 180,000 HOUSEHOLDS OR SOME 650,000 PERSONS.
DESPITE A SERIES OF ADJUSTMENTS TO THE RENT INCREASE SYSTEM WITH THE OBJECTIVE OF NARROWING THE GAP BETWEEN CONTROLLED RENTS AND PREVAILING MARKET RENT AND THE CURRENT STABILITY OF THE MARKET, THE DISPARITY BETWEEN CONTROLLED AND PREVAILING MARKET RENTS CONTINUES. THEREFORE THE GOVERNMENT CONSIDERS IT NECESSARY TO PROPOSE ΤΟ EXTEND THE LIFE OF THIS LEGISLATION FOR ANOTHER TWO YEARS.
THE SPOKESMAN