ENG-1995 — Page 231

HOUSING

Sales Descriptions on Uncompleted Flats

After public consultation in 1994, the Law Reform Commission published a report in April, recommending the introduction of legislation to require developers to provide sales literature with clear and accurate descriptions about uncompleted properties put on sale, and to impose penalties for non-compliance. The government is consulting property developers and relevant professional bodies on these recommendations and expects to reach a decision in early 1996.

Rent Control

Statutory controls on rents and security of tenure date from 1921. Certain domestic tenancies have both their rent levels controlled and receive security of tenure. They

are:

--Tenancies in pre-war domestic premises.

-Tenancies in post-war domestic premises completed or substantially rebuilt after August 16, 1945, and before June 1981 (but not new lettings created on or after June 10, 1983, or to tenancies of premises having a rateable value of or above $30,000 as at June 10, 1983).

Nearly all other domestic tenancies receive security of tenure, providing the tenant is prepared to pay the prevailing market rent.

The legislation provides for controlled rents to be increased progressively up to market levels so that rent controls can be removed by the end of 1996. The provisions for security of tenure will, however, continue to apply. 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. Provisions exist to facilitate an agreed surrender by the tenant of his protected tenancy in exchange for a consideration.

The Rating and Valuation Department administers the Landlord and Tenant (Consolidation) Ordinance and publishes explanatory pamphlets to help people understand their position in relation to the legislation. It provides an advisory and mediatory service to handle the many practical problems arising from rent controls. Its rent officers also attend district offices to deal with referred cases and answer enquiries on landlord and tenant matters.

Public Housing

Expenditure on public housing and related infrastructure is expected to amount to some $25 billion in 1995-96, or 12 per cent of total public expenditure.

Public Rental Housing

The stock of public rental housing amounts to about 700 000 flats.

Rent Policy

Rents for domestic units are based on tenants' ability to pay. Tenants may choose to live in the minimum space standard of 5.5 square metres per person, at a median rent- to-income ratio not exceeding 15 per cent. If they wish to occupy 7 square metres per person, the maximum median rent-to-income ratio is 18.5 per cent. With rents being

187