On 9 July 2004, the Landlord and Tenant (Consolidation) (Amendment) Ordinance 2004  was passed by legislation in Hong Kong to effectively remove the security of tenure provisions for domestic tenancies.

Prior to this change of security of tenure routine, a domestic tenant was entitled to statutory renewal of tenancy provided they were prepared to pay the prevailing market rent. In the case of dispute between landlord and tenant, the Lands Tribunal1 would determine the prevailing market rent. This regime was abolished by the legislative amendments and as a result, all tenancies created on or after 9 July 2004 will terminate upon expiry unless new tenancy terms are mutually agreed between the landlord and tenant.

In order to soften the impact of such dramatic changes on the residential leasing market, a transitional arrangement to help landlords and tenants of existing tenancies before the legislative amendment cope with the change was created.

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