Lease Renewal Idea For Subdivided Flats Draws Flak

Reports that a government panel looking into tenancy control for subdivided units may bring back a rule giving tenants priority to renew their leases have come under fire from both owners' and residents' representatives.

The Task Force for the Study on Tenancy Control of Subdivided Units is said to have recommended that tenants be allowed a two years' lease after the end of their initial two-year fixed-term contract.

The policy of giving existing tenants priority to renew had been in place until the government scrapped tenancy control in 2004.

It's believed to be one of the ideas discussed by the taskforce – formed in April 2020 and aims to provide support for grassroots residents – as it plans to submit its final report and recommendations to the government by the end of March.

A panel member and president of Hong Kong Owners Club, Shea Hing-wan, said he's against the idea of giving existing tenants priority in renewing their leases.

He said prior to 2004, some owners had a hard time getting rid of troublesome and irresponsible tenants because of the policy.

"As for me, I would immediately tear [the subdivided units] down and I wouldn't lease out anymore. I didn't know when I could get into trouble... No matter how experienced I am, I couldn't say confidently that I know how to choose a tenant," Shea told an RTHK programme.

A concern group is also cool to the idea, saying it fails to protect the interest of grassroots tenants.

Chan Wai-hung of the Hong Kong Subdivided Flats Concerning Platform said residents should be allowed to live in the flats for up to nine years, instead of four, as they await a public housing unit.

"Some of the residents told me that even though the government said the average waiting time for a public housing unit is 5.6 years, but it may take seven to eight years' time to eventually move into the flat," he said.

On rent control, the panel reportedly discussed setting a cap of 15 percent on how much it could be raised each time.

Chan said 15 percent would be too much to bear for the underprivileged and called on officials to link rent increases with inflation.

The task force has submitted a paper to the Legislative Council and agreed in principle that appropriate tenancy control should be set up in the SAR to safeguard the interests of tenants.

Despite the problems associated with subdivided homes such as poor living conditions, the panel acknowledged that they offer basic accommodation for the less well-off, and the aim is not to phase them out.