Calls to regulate initial rent levels in Hong Kong’s notorious subdivided flats dismissed by senior housing official
- Undersecretary for Housing Victor Tai argues that it is impractical for government to set rent levels for individual subdivided flats
- Legislators say law controlling rent rises and other charges is not enough to protect tenants of subdivided flats
A housing official has dismissed calls for the government to regulate initial rent levels in Hong Kong’s notorious subdivided flats despite criticism by legislators that a law controlling various charges is not enough to protect tenants.
Undersecretary for Housing Victor Tai Sheung-shing argued that it was impractical for the government to set rent levels for individual subdivided flats because prices were determined by various factors, including location, size and facilities provided.
“A government-set rent level may not be fair to all residents [of subdivided flats],” Tai told lawmakers at a meeting of the Legislative Council’s housing panel on Monday.
“The major aim of government policy is to protect the living environment of the residents and help them resettle in more adequate housing. Imposing initial rent levels for them cannot ensure they will have a good living environment.”
At the centre of Monday’s discussion was the Landlord and Tenant (Consolidation) (Amendment) Ordinance, which came into effect in January 2022.
The ordinance caps rent rises for subdivided flats at no more than 10 per cent per two-year lease period. Occupants and landlords must also sign a standard tenancy agreement setting out the rent, deposit, utility charges and fees incurred in the event of a breach of the contract.
