XN000022-1981-11-20 — Page 2

FRIDAY, NOVEMBER 20, 1981

LANDLORD AND TENANT (CONSOLIDATION) ORDINANCE

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GOVERNMENT TODAY ANNOUNCED THAT IT IS PROPOSED TO PROVIDE

A MECHANISM FOR REGULATING THE RELATIONSHIP BETWEEN LANDLORDS AND TENANTS OF DOMESTIC PREMISES EXCLUDED FROM THE EXISTING RENT CONTROL LEGISLATION AND THOSE WHICH ARE SCHEDULED TO BE EXCLUDED IN FUTURE.

THIS PROPOSAL IS CONTAINED IN THE LANDLORD AND TENANT (CONSOLIDATION) (AMENDMENT)(NO. 2) BILL 1981 PUBLISHED IN THE GOVERNMENT GAZETTE TODAY.

COMMENTING ON THE BILL, A GOVERNMENT SPOKESMAN SAID THAT UNDER ITS PROVISIONS THE LANDS TRIBUNAL WOULD BE EMPOWERED TO DECIDE WHETHER A TENANT OTHERWISE UNPROTECTED BY RENT CONTROL SHOULD BE GRANTED A NEW TENANCY AND TO DETERMINE THE TERMS OF THE NEW TENANCY WHERE THESE CANNOT BE AGREED BETWEEN THE LANDLORD AND THE TENANT.

UNDER THE BILL, A TENANT WILL BE ENTITLED TO APPLY TO THE LANDS TRIBUNAL FOR A NEW TENANCY WHENEVER THE CURRENT TENANCY IS APPROACHING EXPIRATION AND THE LANDLORD DOES NOT AGREE TO ITS RENEWAL. A NEW TENANCY WILL BE ORDERED BY THE LANDS TRIBUNAL UNLESS THE LANDLORD CAN ESTABLISH THAT HE REQUIRES THE PREMISES FOR HIS OWN OR HIS FAMILY'S OCCUPATION, THAT HE INTENDS TO REBUILD THE PREMISES OR THAT ONE OF THE OTHER SPECIFIED GROUNDS FOR OPPOSING THE GRANT OF A NEW TENANCY APPLY. THE BILL PROVIDES THAT THE DURATION OF ANY NEW TENANCY WILL BE FOR A PERIOD NOT EXCEEDING THREE YEARS.

WHERE A NEW TENANCY HAS BEEN ORDERED, THE PARTIES ARE FREE TO NEGOTIATE THE NEW RENT. IF AGREEMENT CANNOT BE REACHED, AN APPLICATION MAY BE MADE TO THE LANDS TRIBUNAL FOR A DETERMINATION OF THE NEW RENT. THE RENT DETERMINED WILL BE THE FAIR MARKET RENT, THAT IS, THE RENT AT WHICH, HAVING REGARD TO OTHER TERMS OF THE NEW TENANCY, THE PREMISES MAY REASONABLY BE EXPECTED TO BE LET, BUT DISREGARDING THE EFFECTS OF THE ORDINANCE.

THE TENANT MAY ELECT WITHIN ONE MONTH AFTER THE DETERMINATION OF ITS TERMS NOT TO TAKE UP THE NEW TENANCY, IN WHICH CASE HE MUST DELIVER UP POSSESSION WITHIN TWO MONTHS.

THE MEASURES ARE DESIGNED TO ENSURE A REASONABLE DEGREE OF SECURITY OF TENURE FOR TENANTS NOT OTHERWISE PROTECTED BY THE RENT CONTROL LEGISLATION. THE SPOKESMAN STRESSED THAT THE PROPOSAL WAS NOT ANOTHER FORM OF RENT CONTROL BECAUSE THE GRANT OF ANY NEW TENANCY WOULD BE SUBJECT TO PAYMENT OF A FAIR MARKET RENT. THE BILL PROVIDES THAT THE SYSTEM WILL BECOME EFFECTIVE FROM DECEMBER 19, 1981.

ANOTHER PROPOSAL OF MAJOR IMPORTANCE IN THE BILL IS THE APPLICATION TO SUB-TENANCIES IN POST-WAR DOMESTIC PREMISES OF THE SAME SYSTEM FOR CONTROLLING RENT INCREASES AS IS ENJOYED BY PRINCIPAL TENANTS.

A

THIS