The current-term Government is committed to reform and embraces changes. With a view to tackling the “long-standing, big and difficult” issue of substandard subdivided units (SDUs) in a comprehensive and orderly manner, the Chief Executive announced in the 2024 Policy Address to put in place, through legislation, the Basic Housing Unit (BHU) regime, under which SDUs in residential buildings have to comply with a set of minimum standards of living conditions, including minimum area, minimum height, fire safety, structural safety, separate toilet, water supply requirements, lighting and ventilation, as well as separate water and electricity meters, and obtain BHU recognition before they can be legally let out for habitation. This aims to ensure the provision of safe, hygienic and reasonable living conditions in SDUs. There will be criminal liability on the person who lets out unrecognised SDUs, while the tenants concerned will not be held liable.
HB conducted a two-month stakeholder consultation from December 2024 to February 2025 on the proposed BHU regime, and consulted the Legislative Council (LegCo) Panel on Housing in December 2024 and March 2025 respectively. LegCo members and stakeholders generally agreed with the framework of the BHU regime. The Basic Housing Units Bill was submitted to LegCo for scrutiny in early July 2025 and then passed by LegCo on 26 September 2025.
The BHU regime is rolled out starting from 1 March 2026 under the principle of “registration first, enforcement later” with 48-month transitional arrangements, aiming to eradicate substandard SDUs in an orderly manner and enhance the living conditions of grassroots tenants. On the same day, the Dedicated Team on Subdivided Units of HB begins to accept applications for registration of pre-existing SDUs, as well as applications for BHU recognition of SDUs complying with minimum standards of living conditions.
During the first year of the implementation of the new regime (i.e. until 28 February 2027), HB primarily motivates owners of pre-existing SDUs to submit their registration applications as soon as possible in order to obtain a 36-month grace period (i.e. from 1 March 2027 to 28 February 2030) for more time in arranging their tenancies and alteration works in a flexible and people-oriented manner.
Starting from the second year of the implementation of the new regime (i.e. from 1 March 2027 onwards), HB adopts a pragmatic, people-oriented and risk-based approach when taking enforcement actions in a reasonable, compassionate and orderly manner against illegal letting of SDUs with no registration and no recognition, so as to ensure that SDU households will not be displaced due to relevant enforcement actions.
The six District Service Teams under HB have geared up to assist affected households in need in finding alternative accommodations (including SDUs that have obtained BHU recognition) in the private market for relocation, and flexibly co-ordinate other housing resources (such as transitional housing, Hostels for Single Persons, interim housing and transit centres) to provide temporary shelters, to ensure that they will not be displaced.
Basic Housing Unit Thematic
Website
Legislative Council Papers
Press Releases
Subdivided Unit District Service
Teams
Information Portal of Subdivided Unit
District Service Teams
Part IVA of the Landlord and Tenant (Consolidation) Ordinance (Cap. 7) (the Ordinance) which implements tenancy control on SDUs came into force on 22 January 2022. The Rating and Valuation Department (RVD) is responsible for the implementation of the Ordinance.
The Ordinance aims to regulate SDU tenancies and provides protection to SDU tenants in various aspects, which include providing four-year security of tenure (first term of two years and second term of two years) for the tenants; restricting the rate of rent increase on tenancy renewal, which must not exceed the percentage change of the territory-wide rental index for all classes of private domestic properties compiled and published by the RVD during the relevant period, and is capped at 10%; and prohibiting landlords from overcharging tenants on utility and services (such as water and electricity), etc.
