ENG-1996 — Page 251

HOUSING

sale, and to impose penalties for non-compliance. The government has completed consultation with property developers and relevant professional bodies on these recommendations. In general, they supported the spirit of the recommendation, although there were comments on the proposed level of penalty for breaches. The administration will study these comments carefully and aims to introduce appropriate legislation in 1997.

Rent Control

The tenants of most domestic premises are afforded security of tenure under the Landlord and Tenant (Consolidation) Ordinance.

Statutory controls date from 1921 and the following domestic tenancies also have their rent levels controlled:

•

Tenancies in pre-war domestic premises; and

• Tenancies in post-war domestic premises completed before June 19, 1981 (but not new lettings created on or after June 10, 1983, nor tenancies of premises with a rateable value of $30,000 or more as at June 10, 1983).

Other domestic tenancies receive security of tenure, provided the tenant is prepared to pay the prevailing market rent.

The legislation originally provided for controlled rents to be increased progressively up to market levels so that rent control could be removed by the end of 1996. However, the Legislative Council passed a resolution in December 1996 to extend rent control for two years, lower the permitted rent levels from 90 per cent of the prevailing market rent to 80 per cent, and lower the maximum rent increase from 30 per cent to 20 per cent. Based on the present legislation, rent control will phase out after December 31, 1998. The provision for security of tenure will, however, continue to apply after the expiry of rent control. 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. 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 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 answer enquiries on landlord and tenant matters in district offices.

As part of the overall review of the Landlord and Tenant ordinance, it is intended to raise penalties against harassment and unlawful eviction to ensure sufficient deterrent,

Public Rental Housing

About 700 000 flats are available for public rental housing.

Rent Policy

Rents for domestic units in the public sector are based on tenants' ability to pay. Tenants may choose to live in the minimum space standard of 5.5 square metres per

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