Proposal to Cap Rent, Agency Fees and Property Agreement Charges

I propose reforms to make rents and housing-related charges more affordable and transparent. For rental and lease purposes, property value should be based mainly on verified construction cost, rather than the price paid for land. Annual rent should not exceed 2.5% of that construction cost. Where land reclamation raises development costs, it should increase rent by no more than 200% and only for a maximum of 20 years. If public funds pay for reclamation, tenants should not bear an added reclamation charge. Agency fees should be capped at 10% of annual rent. Agency forms should have a standard flat fee agreed by the relevant professional body. Agreement fees without a lawyer should be prohibited, while lawyer-prepared agreements should follow a standard percentage. Buyers may purchase property at any agreed price, but banks should be cautious about lending above construction value. Landlords who overpay should not pass those costs on to tenants through excessive rents.

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