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Rent controls for subdivided flats which were scrapped 17 years ago should be reintroduced and a standard contract imposed as measures to protect poorer families, according to a group looking at regulating the sector

The Post has been told the government-appointed task force was considering two recommendations from its members, including introducing priority renewal rights for tenants of subdivided units, and capping the rent rise on lease renewal at 15 per cent of current rent.

Briefing lawmakers on Monday on the group’s progress, the Transport and Housing Bureau noted the task force, which is expected to submit a final report in March, “had a relatively clear consensus that a standard tenancy agreement for [subdivided homes] should be devised”.

According to the bureau the agreement should, “set out the rights and obligations of both the landlord and the tenant, the term and period of tenancy, rent, notice period for early termination of tenancy, the arrangements concerning electricity and water charges and other miscellaneous charges”.

It continued: “As regards the tenants’ right to renew the tenancy, the task force has to further discuss and deliberate on whether a certain degree of security of tenure should be offered to … tenants and whether some form of regulation should be enforced on the rate of rent increase upon tenancy renewal, et cetera, as well as the possible options.”

A person familiar with the task force’s work said the first option would allow tenants to enter a two-year fixed lease with the landlord – as opposed to one year which is common in the market – during which they could not be evictedleave. On expiry, the tenant would be able to renew their lease under the same terms for another two years.

Another source said fixed lease terms of different lengths were also being considered.

(The source: South China Morning Post)


 


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