ENG-1975 — Page 143

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LAND AND HOUSING

With an increase in the supply of newly completed buildings from 1963 to 1966, the housing position eased and rents stabilised. As a result, this ordinance was allowed to expire in June 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 turn.

While the situation was being considered, a temporary measure was enacted in January 1970 to 'freeze' rents. This was closely followed in June by the Rent Increases (Domestic Premises) Control Ordinance 1970, since re-enacted as Part II of the Land- lord and Tenant (Consolidation) Ordinance. This ordinance, which followed closely the provisions of the 1963 ordinance, contained a number of exclusions. In particular, larger flats and houses, fresh lettings, and lettings in newly constructed buildings were not controlled. The ordinance was due to expire at the end of May 1974 but because of the continuing upward trend in rents for uncontrolled accommodation it became necessary, in June 1973, to enact further temporary legislation to extend controls to unprotected tenancies. In December 1973, the 1970 legislation and the temporary ordinance were repealed and replaced by a revised Part II to the Landlord and Tenant (Consolidation) Ordinance. It provided security of tenure and controlled increases in rent for the vast majority of tenants and sub-tenants in post-war domestic premises. It does not, however, apply to tenancies in buildings certified for occupation on or after the date of its coming into operation-December 15, 1973. This new legislation is due to expire on December 14, 1976, but may in certain circumstances, where rents have been increased, provide security of tenure beyond that date.

In respect of existing tenancies, 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 is not agreed, the landlord may apply to the Commis- sioner for his certificate of what increase may be made to the current rent. The amount of this increase is arrived at by taking the difference between the fair market rent, as determined by the Commissioner, and the current rent and dividing by five. This is subject to a maximum increase of 21 per cent of the current rent if the rateable value of the premises is $30,000 or less. However, the factor is variable and can be altered by resolution of the Legislative Council to suit a changing rental situation. Increased rates charges may be passed on to tenants and sub-tenants.

Where premises become vacant and the landlord wishes to let to a new tenant, the parties are free to agree the rent payable but have to inform the Commissioner. Any such tenancy becomes subject to the provisions of the legislation. The Commis- sioner has wide powers under the ordinance and also issues certificates to assist in disputes as to the primary user of premises. Where landlords or tenants are dissatisfied with the increase of rent certified, there is a right of review by an independent Rent Tribunal and also of appeal to the District Court.

In July 1975 the Secretary for Housing announced in the Legislative Council that all new housing completed between December 15, 1973 and December 31, 1977 will enjoy five years of freedom from any new or extended rent controls from the date of the occupation permit. This important concession is aimed at encouraging