ENG-1978 — Page 147

HOUSING AND LAND

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As a further step to improve its service to members of the public, the Rating and Valuation Department launched a Rent Officer Scheme in April, 1978. Under the scheme, rent officers attend selected City District Offices on set days each week to deal with referred cases and to answer enquiries on landlord and tenant matters relating to both pre-war and post-war premises.

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) Ordinance. 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 years or more. Tenancies held in the names of public bodies, corporations, foreign or Commonwealth governments, partnerships or firms are also excluded. The life of the present legislation has been extended to December, 1979.

For existing tenancies, landlords and tenants are free to agree to 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 his certificate of what increase may be made to the current rent. The amount of this in- crease is arrived at by taking the difference between the fair market rent, as determined 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 luxurious 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.

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Where premises become vacant and the landlord wishes to let to a new tenant, the parties are free to agree on the rent payable but have to inform the commissioner. The commissioner has wide powers under the ordinance and issues certificates to assist 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 current shortage of domestic accommodation.

The views of local associations and societies that have an interest in property matters are made known to the government through meetings with their nominated representatives.