Grace-period Registration

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The Basic Housing Unit (BHU) regulatory regime provides a 48-month transitional arrangement to allow time for owners / operators of existing subdivided units (SDUs) to understand the new regulatory regime and gradually adapt to BHU-related requirements. Owners (or persons with written consent of owner(s)) of existing SDUs may, within the 12-month registration period, apply for grace-period registration for the SDUs in their flats by submitting the completed application form along with the required documents/information. After the registration period, SDUs in flats with valid grace-period registration (registered flats) will enjoy a 36-month grace period to carry out necessary alteration works and apply for BHU recognition.

Registration Period:

1 March 2026 to 28 February 2027

Grace-period:

1 March 2027 to 28 February 2030

Eligibility for Registration:

  • The flat is located in a private domestic building or in the domestic part of a composite building
  • The flat has at least one valid domestic tenancy of an SDU during 4 July 2025 to 3 October 2025 (supporting documents required: tenancy notice (Form AR2) endorsed by the Rating and Valuation Department and/or a copy of the tenancy agreement)

Required Documents/Information for Registration:

  • Completed application form
  • Copy of the Notice of Tenancy (Form AR2) endorsed by the Rating and Valuation Department and/or tenancy agreement
  • Latest record of land register / title register from the Land Registry
  • Copy of the proof of identity of the applicant
  • Written consent of the owner (if applicable)

Application Fee for Registration:

Free

Grace Period Arrangement:

  • After the registration period expires, registered flats can enjoy a 36 months grace period (i.e. from 1 March 2027 to 28 February 2030), the Housing Bureau will not take enforcement action against illegal letting of registered flats during this period, allowing more time for the owner of the flat / operators of the existing SDUs to carry out alternation works, discuss tenancy arrangement with tenants and to apply for BHU recognition
  • The six-month period prior to the expiry of the grace period (i.e. from 1 September 2029 to 28 February 2030) is the countdown period. No person may enter into a new domestic tenancy during the countdown period for an SDU in a registered flat without valid BHU recognition, otherwise the person entering into the tenancy with the tenant commits an offence involving criminal liability.
  • If an SDU in a registered flat has not obtained BHU recognition by 1 September 2029 (the commencement of the countdown period), the domestic tenancy of that SDU may be automatically terminated, depending on the commencement date of its first term
    • For domestic tenancies of SDUs with the first term commencing on or before 3 October 2025, the tenancy will not be automatically terminated upon commencement of the countdown period. Relevant SDU tenants will continue to enjoy the full four-year (first term of 2 years + second term of 2 years) security of tenure under Part IVA of the Landlord and Tenant (Consolidation) Ordinance (Cap. 7)
    • For domestic tenancies of SDUs with the first term commencing after 3 October 2025, the tenancy will be automatically terminated upon commencement of the countdown period, even if the statutory security of tenure has not yet expired. Relevant SDU tenants may recover as a civil debt compensation from the operator

Enforcement Arrangement:

  • With the provisions under the Basic Housing Units Ordinance (the Ordinance) concerning the offence of illegal letting of SDUs (i.e. section 8 of the Ordinance) coming into effect on 1 March 2027 (i.e. after the expiry of the 12-month registration period), from that day onwards, the Housing Bureau (HB) will take enforcement actions against the illegal letting of SDUs without valid grace-period registration and without valid BHU recognition in an orderly manner
  • From 1 March 2030 onwards (i.e. after the expiry of the 36-month grace-period), HB will take enforcement actions against the illegal letting of SDUs without valid BHU recognition

Publishing Information:

To facilitate SDU tenants and the public in identifying whether a flat has valid grace-period registration, the addresses of registered flats will be uploaded to this website later for public inspection. Information of owners, operators and tenants will not be disclosed for the protection of personal privacy.

Notification of Changes:

After obtaining the grace-period registration, if there is any change to the particulars of owner / operator of the registered flat, the owner / operator concerned must notify the Secretary for Housing in the specified form, of the change within 15 days on which he / she becomes aware of the change.