The Chief Executive announced in the 2024 Policy Address to put in place, through legislation, the Basic Housing Unit (BHU) regulatory regime, under which only up-to-standard subdivided units (SDUs) in residential buildings recognised as BHUs will be allowed to be let out for habitation in the future so as to ensure reasonable and safe living conditions in SDUs. The Housing Bureau’s (HB) proposal on the regulatory regime on BHUs in December 2024 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.
HB conducted a two-month stakeholder consultation from December 2024 to February 2025 on the proposed regulatory regime on BHUs, 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 regulatory regime, and the legislative proposal has reflected the major views received.
The BHUs Bill was gazetted on 20 June 2025 and was introduced into LegCo for first and second readings on 9 July 2025. HB currently makes every effort to facilitate LegCo's scrutiny work and strive for LegCo's passage of the Bill as soon as possible, with a view to rolling out the BHU regulatory regime in March 2026, which represents a significant milestone in eradicating substandard SDUs.
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.
