New | Key housing committee warns over rent controls, building on country parks

The government-appointed committee tasked with long-term planning for housing development in Hong Kong has expressed reservations about introducing rent controls and regulations for “subdivided flats” – and advised against using country park land for building homes.

In its report released on Monday, the Long-term Housing Strategy Steering Committee also warns against offering rental subsidies to those on the waiting list for public housing, saying it would only benefit landlords.

Secretary for Transport and Housing Professor Anthony Cheung Bing-leung, also the committee chairman, said on Monday that rent controls could give rise to more problems than solutions.

“Controlling rents could discourage landlords from letting their flats and thus decrease the supply of flats,” said Professor Cheung, who drew criticism last week by suggesting the government could carry out a study on rent controls.

The committee’s report says the issue should be put on hold for now, pending further “public discussion”.

“As legislation is required to introduce rental control, considerable time would be needed before it could be implemented…Given the controversies of rental control, the [committee] cautions that clear community consensus has to be secured before any form of rental control is contemplated,” the report reads.

Professor Cheung also said the government had no immediate plan to offer an amnesty on illegally converted and subdivided units. On calls to regulate such housing, which is often dangerous and offers inadequate living conditions, the report asks the government to take into account “the pros and cons of the proposal”.

There is no legal definition of a subdivided flat, but the term is commonly used to describe cases where one flat is partitioned into two or more self-contained cubicles. Many low-income families live in the flats because they cannot afford anything else, but often the conversions have been carried out illegally.