ENG-1977 — Page 156

M

HOUSING AND LAND

103

¿

provides a mediatory and advisory service to deal with many of the practical problems arising from these controls and, in particular, where exclusion proceedings are launched to ensure that tenants and sub-tenants understand their rights.

Rent Control of Post-War Premises

Comprehensive legislation affecting post-war domestic premises in the private sector has been continuously in force in one form or another since 1962, apart from the period between 1966 and 1970, and is now embodied as Part II of the Landlord and Tenant (Consolidation) Ordinances. This legislation provides security of tenure and controls increases in rents for the vast majority of tenants and sub-tenants in post-war domestic premises in the private sector. It does not, however, apply to tenancies in buildings certified for occupation after December 14, 1973, nor to tenancies entered into after December 31, 1975, for a term of three or more years. Tenancies held in the names of public bodies, corporations, foreign or Commonwealth governments, partnerships or firms also are excluded. The life of the present legislation has been extended to December, 1979.

For 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 commissioner for a 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 deter- mined by the commissioner, and the current rent and dividing by three. This is subject to a maximum increase of 21 per cent of the current rent for the majority of premises, other than certain larger houses and flats. No further such increase is permitted, other than by agreement, within a period of two years. However, the factor is variable and can be altered by resolution of the Legislative Council, as was done in 1977 when it was reduced from four to three. Increased rates charges may be passed on to tenants and sub-tenants as increases in rent and, where the landlord incurs expenditure of $5,000 or more on improvements, the rent may be increased by 20 per cent a year of the amount expended.

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. The commissioner has wide powers under the ordinance and issues certificates to help in disputes about the primary user of premises. Where landlords or tenants are dis- satisfied 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.

All new housing completed between December 15, 1973, and December 31, 1978, will have five years of freedom from any new or extended rent controls from the date of the occupation permit. It is the aim of the government, in giving this important concession, to encourage new housing development in the private sector to help meet the shortage of domestic accommodation.

The views of local associations and societies having an interest in property matters are made known to the government through meetings with their nominated repre- sentatives. In addition, a standing committee representing concerned government departments reports regularly to the Secretary for Housing on the working of the legislation.