New bill regulates leasing of subdivided units

The measure will penalise parties leasing unrecognised units.

Basic Housing Units (BHUs) Bill announced by the government today sets a regulatory regime for the leasing of subdivided units (SDUs).

The Bill requires SDUs in residential buildings to obtain BHU recognition and comply with a set of minimum living standards including area, lighting, ventilation, water, electricity and fire protection, etc.

Unregistered SDUs and SDUs with grace period expired must also apply for BHU recognition. Individuals who will lease unrecognised SDUs will be criminally liable, whilst tenants will not be responsible.

"The Government will set up a 12-month registration system for pre-existing SDUs, a grace period of 36 months will be given to carry out necessary renovation works and apply for BHU recognition,” said a government spokesman.

The Bill will be introduced into the Legislative Council (LegCo) for first and second readings on July 9, with a view to rolling out in March 2026.