The Chief Executive announced in the 2024 Policy Address to put in place, through legislation, a system on the renting of subdivided units (SDUs) in residential buildings, under which up-to-standard units will be named as Basic Housing Units (BHUs). The Government’s proposal on the regulatory regime on BHUs covers the regulation timetable, the scope of regulation, the registration system for pre-existing SDUs, the recognition system on BHUs, the minimum standards of living conditions for BHUs, the offences and penalties, the appeal mechanism, as well as the enforcement approach and priorities.
The Government conducted a stakeholder consultation from 2 December 2024 to 10 February 2025 on the proposed regulatory regime on BHUs. The Housing Bureau will work at full steam to consolidate the views received on the BHU regulatory regime and report to the Legislative Council Panel on Housing on the summary of views and seek the Panel’s views on the latest proposal on the regulatory regime as soon as possible.
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.
