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HOUSING AND LAND

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 1963 (apart from between 1966 and 1970) and is now embodied as Part II of the Landlord and Tenant (Consolidation) Ordinance. The legislation, which provides security of tenure and controls rent increases, now covers the majority of tenancies and sub-tenancies in post-war domestic premises in the private sector. It does not, however, apply to tenancies in buildings first certified for occupation after June 18, 1981, nor, with effect from December 19, 1982, to tenancies of premises having a rateable value of $60,000 or above.

Landlords and tenants are free to agree the rent on a fresh letting and for an increase in rent in respect of an existing tenancy, 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 the increase is arrived at by taking half the difference between the current rent and the fair market rent. This is further subject to a maximum increase of 30 per cent of the current rent and increases are permitted only once every two years. Increases in rent for sub-tenancies are dealt with in the same way as tenancies. The functions of the Rent Tribunal Panel, previously appointed to determine applications for reviews of rent increase certificates, were taken over by the Commissioner of Rating and Valuation on October 1, 1982, and an appeal against the commissioner's review now lies with the Lands Tribunal.

Provisions governing the repossession of premises and many other judicial functions under Part II of the ordinance, formerly determined by the district courts, were taken over by the Lands Tribunal on October 1, 1982.

Other Measures Affecting Landlords and Tenants

For domestic tenancies outside these controls, Part IV of the Landlord and Tenant (Consolidation) Ordinance provides a measure of security of tenure for a sitting tenant who wishes to renew his tenancy. Under these provisions, a new tenancy must be granted unless the landlord can satisfy the Lands Tribunal that he requires the premises for his own occupation or that he intends to re-build the premises, or on one of the other grounds specified in the legislation. The parties are free to agree on the rent and terms for the new tenancy but failing agreement the parties can apply to the Lands Tribunal for a determination. This scheme is intended as a permanent framework regulating the relationships of landlords and tenants for nearly all domestic tenancies not otherwise subject to the Part I or II controls.

The Rating and Valuation Department administers many aspects of this legislation and provides a mediatory and advisory service to deal with the practical problems arising from rent controls. In addition, the department operates a Rent Officer Scheme, under which rent officers attend city district offices in the urban areas and district offices in the New Territories on set days each week to deal with referred cases and to answer enquiries on landlord and tenant matters.

Land

Administration

On April 1, 1982, responsibility for all land matters in Hong Kong was brought under a single authority, the Director of Lands, and a new unified department, the Lands