ENG-1987 — Page 206

HOUSING

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Separately, it has been agreed with the Law Society that all Deeds of Mutual Convenant arising from new, non-industrial leases granted since February 1986 as well as all Deeds of Mutual Covenant arising from all non-industrial redevelopments will be drawn up following a set of guidelines aimed at improving the management of common areas in a building and achieving a better balance of interests between the developers and owners.

Furthermore, district building management co-ordination teams have been set up in seven districts so far to offer advice to owners' corporations, mutual aid committees and other building management bodies, at a district level.

These teams of professional housing managers and assistants play an important role in encouraging the formation of owners' corporations and in providing advice to the members of management committees. They also work towards improving public awareness in building management matters by means of seminars and discussion groups.

Rent Control in the Private Sector

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Statutory controls on rents and security of tenure in Hong Kong date back to 1921. The present legislation governing these matters is the Landlord and Tenant (Consolidation) Ordinance.

The legislation is under constant review to improve its working and to achieve the objec- tive, recommended in 1981 by a Committee of Review and endorsed by the government, that as soon as circumstances permit, rent control should be phased out.

At present, statutory controls apply only to domestic premises in the private sector unless otherwise exempted. Tenants are afforded rent increase control and security of tenure. Unless a tenant voluntarily vacates the premises, a landlord must apply on certain specified grounds and obtain an order from the Lands Tribunal before he can recover possession.

Heavy penalties are prescribed for harassment of a protected tenant with intent to induce him to leave. However, provisions exist to facilitate negotiations by which the parties may reach an agreement whereby the tenant surrenders his protected tenancy in exchange for a consideration.

The Rating and Valuation Department publishes explanatory pamphlets to help people understand their position in relation to the legislation, and provides an advisory and mediatory service to deal with the many practical problems arising from rent controls. It also operates a scheme under which rent officers attend district offices on set days each week to deal with referred cases and answer enquiries on landlord and tenant matters.

Pre-war Premises

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Legislation controlling rents of pre-war premises and providing security of tenure was instituted by proclamation immediately after World War II and in 1947 was embodied in the Landlord and Tenant Ordinance – since re-enacted as Part I of the Landlord and Tenant (Consolidation) Ordinance.

Part I previously applied to both domestic and business premises but as from July 1, 1984, it applies only to domestic premises. It restricts rents by reference to pre-war levels (standard rent). New or substantially reconstructed buildings are excluded from Part I controls.

Increases in rents have been permitted annually in recent years, the latest being in July 1987 when the legislation was amended to provide for permitted rents to be 35 times (previously 30 times) the standard rent (i.e. the rent payable in respect of the unfurnished premises on or most recently before December 25, 1941). However, in no case is the