Explainer | What landlords and tenants have to look out for under Hong Kong’s new rent-control law for subdivided flats
- Landlords will face more stringent controls and cannot raise rent prices during the tenancy agreement or overcharge tenants
- Bill will not apply to sites with issues such as illegal structures and unauthorised works
A bill to regulate rent at about 110,000 subdivided flats in Hong Kong, home to some of the city’s poorest residents, will be presented to the legislature next week and is expected to take effect as early as the end of the year.
The Landlord and Tenant (Consolidation) (Amendment) Bill 2021 is a government measure designed to tackle the problem of unaffordable housing that has long plagued the city. A severe shortage of public housing has meant that tens of thousands of low-income families have no choice but to live in shoebox dwellings in rundown buildings.
They are often overcharged by landlords and can be evicted easily when the market level of rent goes up and they cannot afford the increase.
Here is a look at the gist of the bill.
1. What types of housing are covered by the bill?
The bill covers subdivided flats, defined as premises that form part of a unit of a building. The definition extends not only to domestic and composite buildings, but also industrial and commercial blocks that are considered illegal as residential areas.