The chief executive said in his Policy Address on Wednesday the government would introduce legislation for a system to govern the renting of subdivided flats, with the goal of helping people improve their conditions by insisting on standards that ensure the health and safety of those that live in these types of units.

Sub-divided units (SDUs) which meet the required living standards would be named as Basic Housing Units.

John Lee said the government would propose the standards of Basic Housing Units should include the provision of windows, an individual toilet, and a floor area of no less than eight square metres.

Lee said current SDUs differ significantly in standards and it was necessary to set a minimum standard to eradicate subdivided flats which are not fit to live in.

Under appropriate regulation, the market demand for SDUs would be satisfied by introducing these revamped Basic Housing Units which meet the required standards.

SDUs that are of poor quality must be converted into Basic Housing Units that meet the required standards. Upon conversion, certified professionals must give their approval to ensure the conversion meets the minimum standards.

Owners who continue to rent out substandard SDUs under the new system would be held criminally liable, while tenants would not be held liable.

Lee said the government would allow time for owners of existing SDUs to carry out the necessary renovation works to meet the new standards. A grace period would be implemented during which enforcement action would not be taken against the illegal renting of subdivided flats.

The Secretary for Housing would be empowered by law to decide, upon expiry of the grace period, when to take enforcement action against sub-standard SDUs.

The deputy financial secretary and secretary for housing would announce further details and seek the views of Legco and other stakeholders for drawing up the legislative proposals and related measures.