What is the Control of Rent Act?
In 1947, the Control of Rent Act was established to safeguard renters from unethical landlords during the growing population and resulting housing shortage that followed World War II.
The Act restricted the landlord’s ability to raise rent or evict tenants from rent-controlled properties and applied to all residential and non-residential properties.
Is the Control of Rent Act still in effect?
As Singapore’s population grew and most Singaporeans started owning their homes, the Control of Rent Act became redundant.
In 2001, the Act was abolished, and rent in Singapore became a free market subject to demand and supply forces.
How was the Control of Rent Act abolished?
The Control of Rent (Abolition) Bill 2001 was passed and carried out to remove rent control in Singapore. It included the following:
- As rent control had been in place for about 35 years, the Controlled Premises (Special Provisions) Act allowed a gradual transition, providing tenants and owners ample time to adapt to the changes. This was aimed at preventing significant displacement or disturbance for homeowners and tenants.
The Controlled Premises (Special Provisions) Act allowed landlords to reclaim their property for development purposes if it was currently rented out under the Control of Rent Act.
- The Tenants’ Compensation Board was tasked to hear applications from landlords and determine how much compensation should be paid to tenants, sub-tenants, and other occupants who must move out because of the redevelopment.
- The Controlled Premises (Special Provisions) Act was then repealed on a date set by the minister after the Tenants’ Compensation Board had settled all of its outstanding matters. Consequently, the board was also dissolved.
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