XN000022-1977-11-25 — Page 5

FRIDAY, NOVEMBER 25, 1977

LANDLORD AND TENANT (CONSOLIDATION) ORDINANCE

TO BE AMENDED TO PERMIT SMALL RENT

INCREASES ****

A BILL PROPOSING AMENDMENTS TO THE LANDLORD AND TENANT (CONSOLIDATION) ORDINANCE, TO PERMIT OWNERS OF PROPERTIES WHOSE RENTS ARE CONTROLLED UNDER PARTS I AND II OF THE ORDINANCE TO OBTAIN SMALL INCREASES, WAS GAZETTED TODAY (FRIDAY).

COVERED BY THE INCREASES WOULD BE PRE-WAR DOMESTIC AND NON-DOMESTIC PROPERTIES AND POST-WAR DOMESTIC PROPERTIES.

A GOVERNMENT SPOKESMAN SAID THAT, DESPITE TWO INCREASES AUTHORISED IN 1975 AND 1976, PRESENT AVERAGE PERMITTED RENTS IN DOMESTIC AND NON-DOMESTIC PROPERTIES BUILT BEFORE THE WAR WERE STILL ONLY ABOUT ONE FIFTH OF FAIR MARKET RENTS.

HE SAID THAT, IN VIEW OF THIS VERY LARGE GAP, IT WAS THOUGHT DESIRABLE TO AUTHOR ISE A FURTHER INCREASE TO COME INTO EFFECT NEXT YEAR.

THE SPOKESMAN SAID IN ABSOLUTE TERMS, THESE INCREASES ARE LIKELY TO AMOUNT TO AN AVERAGE OF AROUND $20 PER MONTH IN THE CASE OF A DOMESTIC UPPER TENEMENT FLOOR AND $110 PER MONTH FOR A NON-DOMESTIC GROUND TENEMENT FLOOR.+

HE SAID THE INCREASES WOULD APPLY TO 6,500 DOMESTIC TENEMENT FLOORS, 3,000 NON-DOMESTIC GROUND TENEMENT FLOORS AND 500 FLATS.

+EVEN FOLLOWING THESE INCREASES, HE SAID, +RENTS FOR CONTROLLED TENANCIES IN PRE-WAR BUILDINGS WOULD, ON AVERAGE, STILL BE ONLY ABOUT ONE QUARTER OF FAIR MARKET RENTS AND, IN THE CASE OF FLATS, ONLY ABOUT ONE FIFTH.+

HE SAID TENANTS WHO WERE ALREADY PAYING RENTS ABOVE THE PERMITTED LEVELS WOULD NOT BE OBLIGED TO PAY ANY INCREASES.

ON POST-WAR DOMESTIC PREMISES, THE SPOKESMAN SAID THE GOVERNMENT INTENDED TO ALLOW RENTS TO INCREASE TO A LEVEL CLOSER TO THE FAIR MARKET RENT THAN AT PRESENT.

HE SAID INCREASES WOULD BE CONTROLLED IN TWO WAYS: BY LIMITING THE AMOUNT TO A PROPORTION DETERMINED BY A FACTOR OF THE DIFFERENCE BETWEEN THE ACTUAL CURRENT RENT AND THE ESTIMATED FAIR MARKET RENT- AND BY IMPOSING A CEILING OF 21 PER CENT OVER A TWO YEAR PERIOD ON INCREASES IN THE CURRENT RENT FOR THE MAJORITY OF PREMISES OTHER THAN LUXURY FLATS AND HOUSES.

HE SAID THE FACTOR WOULD BE LOWERED FROM FOUR TO THREE, MEANING THAT FROM 1977 THE INCREASE WOULD AMOUNT TO ONE THIRD OF THE DIFFERENCE BETWEEN THE CURRENT RENT AND THE FAIR MARKET RENT, COMPARED WITH A QUARTER PREVIOUSLY.

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