ENG-1971 — Page 172

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LAND AND HOUSING

RENT CONTROL

Legislation controlling rents and providing security of tenure was instituted by proclamation immediately after the war and was later embodied in 1947 in the Landlord and Tenant Ordinance. It applied to both domestic and business premises and restricted rents by refer- ence to pre-war levels, while excluding new and substantially re- constructed buildings from control. Following an amendment in 1953, permitted increases in standard rents were raised to 55 per cent for domestic premises and 150 per cent for business premises, at which level they have remained ever since.

There is provision in the Landlord and Tenant Ordinance for the exclusion of premises where redevelopment is intended. Such exclusions are made on the recommendation of a tenancy tribunal by order of the Governor or the Governor in Council in the case of an appeal. The payment of compensation to tenants dispossessed is almost invariably a condition to the grant of an exclusion order. Two hundred and sixteen such orders were approved during 1971, involving 545 buildings. An amendment in 1968 provided that, sub- ject to the agreement being certified by the Secretariat for Home Affairs, a tenant may accept compensation from his landlord in return for delivering up vacant possession of his premises; 634 agreements under this provision were certified during 1971-

The 1953 amending legislation also provided for the establishment as part of the Secretariat for Home Affairs of two tenancy inquiry bureaux, one in Hong Kong and one in Kowloon, to assist in the working of the Landlord and Tenant Ordinance. Their principal task is to provide factual information to tenancy tribunals in respect of exclusion proceedings, and where premises are declared dangerous by the Building Authority, which may also involve the payment of compensation. They also provide general advice and assistance on tenancy matters.

In respect of post-war premises, legislation dates back to 1952 and the Tenancy (Prolonged Duration) Ordinance which gave limited security of tenure to certain tenants who had entered into oral tenancy agreements involving the payment of key money or premia. In 1963 the three-year security provided by this ordinance was extended to five years. However, the payment of key money etc in such circumstances is no longer so prevalent in Hong Kong. In- creases in rent in 1961 and the early part of 1962 resulted in the enactment of the Tenancy (Notice of Termination) Ordinance which generally requires landlords seeking possession to give six months' notice of termination.