ENG-1972 — Page 140

LAND AND HOUSING

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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. Increases 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.

The first comprehensive legislation affecting post-war domestic premises was the Rent Increases (Domestic Premises) Control Ordinance 1963 which was enacted primarily to control increases in rents and provide a measure of security of tenure. With an increase in the supply of newly completed buildings in 1963 through to 1966 the housing position eased and rents stabilised. As a result, this ordinance was allowed to expire on June 30, 1966. For the next three years the situation remained fairly quiet but, with a return of confidence following the disturbances in 1967 and a continuing demand for accommodation, rents by the end of 1969 had taken a sharp upward trend. While the situation was being considered, a temporary measure was enacted in January 1970 to 'freeze' rents and this was followed in June by the Rent Increases (Domestic Premises) Control Ordinance 1970. This ordinance was originally due to expire at the end of May 1972, but has been extended for a further two years.

The ordinance, which follows very closely the provisions of the 1963 ordinance, provides security of tenure for tenants of post-war domestic premises up to May 31, 1974. Where rent has been increased under the ordinance, the security may in certain circumstances extend beyond this date. There are a number of exclusions, in particular larger flats and houses, and new lettings are not controlled. Landlords and tenants are free to agree an increase in rent, but such agreements must be endorsed by the Commissioner of Rating and Valuation. Where an increase in rent is not agreed, the landlord may apply to the Commissioner for his certificate as to what may be con- sidered a fair increase. If the Commissioner has endorsed an agreed increase or if he has certified an increase in rent, the tenant has security of tenure at the new rent for a period of two years from the date of the increase. Where the rent has been increased once under the ordinance, the landlord may be able to obtain two further increases in rent by service on his tenant of a specified notice. Neither of these further increases can exceed five per cent of the rent prevailing at the time, and each such increase affords the tenant security of tenure at the rent notified for one year from the date the increase becomes effective. The Commissioner has wide powers under the ordinance and also issues certificates to assist in disputes as to whether or not particular premises are excluded from its provisions. Where landlords, and in certain cases tenants, are dissatisfied with the increase in rent certified by the Commissioner, there is a right of