LettersHong Kong housing: subdivided flat residents need more than a cap on rent increases

Name: Hong Kong has until 2049 to fix its housing crisis, but is it possible?
Uploaded: 2021-10-03T23:30:16.000Z
Duration: 10 min 8 s
Description: Hong Kong has until 2049 to fix its housing crisis, but is it possible?

The Landlord and Tenant (Consolidation) (Amendment) Bill does not seem to take into account issues such as affordability, job insecurity, and safety and hygiene in subdivided flats

Even a 10 per cent rent increase could be devastating to a family that lacks a stable income or has to get by on minimum-wage work

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A resident in her subdivided flat in Mong Kok on August 13. Photo: Jonathan Wong

Letters

Published: 7:30am, 4 Oct 2021

I am writing with reference to the proposed Landlord and Tenant (Consolidation) (Amendment) Bill 2021. The bill still does not address some core issues. It does not seem to consider affordability, the loss of jobs during the pandemic, and the safety and hygiene conditions of subdivided flats.

First, let’s focus on rent increases. Capping rent increases at 10 per cent might sound fine for someone who is on a stable income and expects to get a decent raise each year. Unfortunately, people who live in subdivided flats are on low incomes, often on minimum wage.

A study found that 70 per cent of low-income families with children live below the poverty line. Hong Kong’s hourly minimum wage has remained flat at HK$37.50 (US$4.80) since 2019, which shows that even a 10 per cent increase is out of proportion.

The pandemic has severely affected the hospitality and retail industries, which often employ people from low-income households as casual workers. Because many of these jobs are not permanent, there is no guarantee there will be a fixed income to pay the rent.

Low as they are, these rents often do not cover the upkeep of the buildings since landlords themselves live off these rents, often as their primary source of income. These buildings slowly degenerate into potential safety and health hazards, putting the lives of their inhabitants at risk. The Buildings Department does conduct investigations and order removals, but that only means these hapless people move from one hellhole to another.

10:08

Hong Kong has until 2049 to fix its housing crisis, but is it possible?

With the average waiting period for government housing at a historic high of 5.8 years, what more can the amended bill do to alleviate these problems?