Secretary for Financial Services & the Treasury Christopher Hui today said the proposed new law on rental enforcement moratorium for tenants of specific sectors does not intend to disrupt the property market or rental market.

Elaborating on the initiatives outlined in the 2022-23 Budget at a press conference this afternoon, Mr Hui explained that the interests of both the landlord and the tenant are not mutually exclusive.

“From the landlord’s perspective, if the tenant is still there, it is just because they are undergoing some short-term cash flow issues and are not able to pay the rent for the time being, so the continued existence of the tenancy agreement may continuously help to facilitate each other to ride through these current economic difficulties and allow the tenant to revive his business going forward. When the business comes back, then he may be able to pay the rent.

“In terms of the landlords themselves, they may also incur extra costs if they need to find another tenant. At the same time, whether they can get another tenant is also a potential unknown."

Mr Hui emphasised that such a move aims to encourage the landlord and tenant to work out a plan together.

“From a tenant’s perspective, it is obvious that when they are undergoing this short-term cash flow issue, with this rental enforcement moratorium, they may be able to relieve some of the short-term burden on their finances and be able to pick themselves up going forward, when the COVID-19 epidemic situation improves.

“This is a mechanism that we intend to put out in such a way that the landlord and tenant can sit together and see how they can work this out together.”