Soco Welcomes Rental Cap But Wants More Action

A representative of local income workers on Thursday welcomed a new law to cap rent increases at subdivided flats by 10 percent. It was approved by lawmakers on Wednesday and takes effect from January.

But Sze Lai-shan, a community organiser at the Society for Community Organization, says rents at subdivided flats are already too high, and the government should also have set a limit on the initial rental charged.

"It's a pity that the government refused to include the setting of the rent level in the bill," she said on RTHK's Hong Kong Today programme. "We request the government include the setting of the rent level of the bill in the coming two years."

Sze said the government has rating valuations for each flat, so it would be possible to base initial rents on that.

In addition to the cap, tenants will also be given priority to renew the lease for another two years.

On Wednesday, the Secretary for Transport and Housing, Frank Chan, said the approved measures struck a balance between offering protection to tenants and protecting the rights of landlords. He said the government could not regulate rents under the first lease.