The Chief Executive has announced the establishment of the Task Force on Tackling the Issue of Subdivided Units (SDUs) in the 2023 Policy Address on 25 October 2023. The Task Force, led by the Deputy Financial Secretary and with the Secretary for Housing as deputy, is conducting an in-depth study on the comprehensive handling of the issue of SDUs and will make recommendations along the following directions in 10 months’ time:
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.