Host: I didn't pay much attention to the rental market before. I'd like to ask if there is room for improvement in the housing system and the housing supply system in your long-term observation.
Lou Jianbo: that's for sure. As a matter of fact, if we study the law, we think that the existing system will always be a system for solving historical problems, such as the housing reform in 1998, because our original public housing supply system can not meet everybody's living needs. We need to carry out housing reform, and we will carry out housing security in 2007. That's because we've been working on the market for housing from 1998 to 2007, when prices were so high that many people couldn't afford to buy houses, so we're going to do housing security. But now the government has done a lot of work on housing security, and we have put forward the idea of "both rent and purchase". But our system is not perfect until now. That's not true, so it will change. For example, Shenzhen recently put forward, forget which year it is, should have done a relatively long plan, it said that the future housing supply in Shenzhen is "4, 2, 2, 2", 40% of commercial housing, 20% of public rental housing and low-rent housing, 20% of the public property rights of the house, the other 20% of Shenzhen in order to absorb talent, Beijing's supply. I heard them say that they are also developing in this respect. But you can't say "4, 2, 2, 2" after that we stopped there.
Moderator: we must adjust according to the market.
Lou Jianbo: Yes.
Host: Beijing is a super city with a very large population. Compared with other capitals in the world, such as Tokyo in Japan, and big cities like Washington and New York in the United States, the population of this kind of big city is certainly very large. So I wonder if I have encountered similar problems and what experience is worth it. What do we learn from it?
Lou Jianbo: I think housing is a problem for big cities. When I was in school in London, I rent a 12 square meter house with a weekly rent of 80.
Host: what year is it?
Lou Jianbo: that's still about 96 years old.
The host: 80 pounds, if it is 1:10, it will be 800.
Lou Jianbo: This is a week.
Host: 800 or a month?
Lou Jianbo: nearly 4000.
Host: that was many years ago.
Lou Jian Bo: This is everywhere. I am a poor student in England. How did I solve it? There's a charity where if the student gets less than a monthly subsidy, you're eligible to apply for our house, and then I queued up to their house for two years. Those two years were really tough, so I think all big cities have similar problems.
Compere: Including Hong Kong which is close to us, a lot of Hong Kong is snail dwelling, maybe worse than the living environment of Beijing.
Lou Jian Bo: Yes. Several of my students work in a Hong Kong law firm. The couple together make nearly 300,000 Hong Kong dollars a month. I asked them if they had any plans to buy a house. He said we did not. We plan to work in Hongkong for seven or eight years or so, and we will leave Hongkong.
Host: To leave Hong Kong, many people also choose to buy a house in Shenzhen and work in Hong Kong, so every day customs clearance.
Lou Jian Bo: Yes.
Host: We're discussing so much now, and the last point we're going to come to is the subject, the people in our house, the tenants. Whether the government or the media, we are concerned about the rights and interests of tenants, everyone has this process of renting a house, have this feeling, one is the housing problem, such as the house we mentioned earlier is a problem, and health, the second is the rent, rent halfway to the landlord demanding a price increase. In the laws and regulations of our country, you also study the law. What do you know about protecting the rights and interests of this group?
Lou Jianbo: The most important thing in the legal circle is the formulation of the Civil Code. There are two very good provisions on lease in the draft submitted for the consideration of the classification of the Civil Code. One is that the lessee has the right of priority. What is the concept of the lessee's right of priority? I rent this apartment for one year. If you want to rent it out after one year, you'll have to rent it to me first as long as the rent I pay is as high as anyone else's.
Moderator: This is the law.
Lou Jianbo: Yes. Our current law does not have a lessee's right of priority, but I think this provision will be retained after the Civil Code is passed in the future. What is the significance of this rule? For example, many times the landlord tells you that I'm going to raise the rent, you're now 3000 a month too low, I want to collect 5000, if there is no such a priority rent, then you go. If you have priority leasehold, then you look for it. If you want to pay 5000, I will give you 5000. No matter who you talk to, as long as I am willing to pay the same rent as he pays.
Host: then I will pay the rent first.
Lou Jianbo: Well, I have the right of priority. Second, we have the original law on the sale of non-breakable lease provisions, sale of non-breakable lease is what it means? It was the landlord who rented the house to me for a year, and the landlord sold it in the sixth month. After that, the new owner had to continue to perform the original lease contract. So this regulation is also in the original law, but this time what is a new regulation? For example, if you are the original landlord, if the new landlord does not fulfill the lease contract, I can ask you and the new landlord together to assume responsibility for me. That way, when you're selling this house, you might think about it and talk to the new guy, because if the buyer really kicks me out then, I can find you. In addition, as we Beijing in July for public consultation on housing rental model contract text there are clear provisions, there are two provisions I think the lessee is more meaningful. One is that you can not increase the rent during the lease period. The second stipulates that the deposit I pay should be within 3 days after the termination of the lease contract.
Moderator: within three days.
Lou Jianbo: Well, you have to give it back to me.
Moderator: the tenant is a protected interest.
Lou Jianbo: Yes. But why do we need to make changes when we say so much? It is because our original law is not perfect enough to modify it.
Host: so I am still revising the process.
Lou Jian Bo: Yes.
Moderator: I also understand that there is a document called "Beijing Housing Rental Contract Model Text" drafted by the Beijing Municipal Committee for Residential Construction and the Municipal Bureau of Industry and Commerce. It has been open for public consultation on July 27 this year. It makes clear that the lessor can not unilaterally increase the rent within the lease term, is it right or wrong? Is that what you mentioned just now?
Lou Jianbo: Yes, that's what I mentioned. You did a lot of homework.
Host: Thank you. Including what we just talked about, the government is already fully considering this issue, so this wave of rent increases will also be an opportunity for more people to focus on this issue, more attention is actually to make the industry more healthy.
Lou Jianbo: I think so. For example, the Beijing People's Congress has started the drafting of the Housing Rental Ordinance again. In addition, we published a 21 article in 2017, and several departments came out together.
Host: which year?
Lou Jian Bo: 2017. Regulating the rental market is an important step in Beijing's reform. Now I understand that the relevant departments are inspecting the implementation of this document to see what regulations need to be adjusted.
Host: is it because of the rising rent?
Lou Jianbo: It can't be said that it's all because of this. Even if it started inspecting before the rent went up, I think it will pay attention to this problem in the inspecting process.
Moderator: I also understand that there is a law called the Urban Real Estate Management Law, which has been revised 11 years ago. What is the status quo of this law? Will it continue to be revised?
Lou Jianbo: Your question is particularly good. Our Urban Real Estate Management Law was enacted in 1995. It has not been changed since it was enacted in 1995. It was only changed once in 2004. In the legislative plan issued by the National People's Congress this time, the revision of the Urban Real Estate Management Law is included in its second type of legislative plan. The second type is that if conditions are ripe, it will be submitted for deliberation. If it is not ripe, it will not be submitted for deliberation, but it shows that everyone has already paid attention to this problem. In addition, with this law, for example, we had the original "Urban Real Estate Development and Management Regulations" and "Property Management Regulations". You want a house to develop and operate, is the development enterprise to build the house, property management is the owner of the house after the hands of how to go supporting management, but what is missing in the middle? The lack of a transaction is how the house came into the owner's hands, or how to rent it to the tenant, or we now have a self-owned enterprise, the legal office of the State Council is also tightly drafted, originally to say that the drafting of the "Housing Exchange Management Regulations," and later because the leasing state policy is more advocated, so also The housing lease Ordinance is drafted. I think the national level and Beijing's "Housing Rental Regulations" can be introduced to provide for some real issues, to protect the interests of lessees, balance the interests of lessors and lessees, and slowly our rental market should be at least better than now.
Moderator: Yes. We talked so much today that we mainly focus on the rental market with rising rents. Rental market is inseparable from the real estate market in China. Everyone cares about housing prices. We have experienced several price rises, then slowly dropped a bit, and then entered a stable period. I feel that it is now a stable stage. You think from your observation, housing prices and rents you think will. What is the trend of development? You can say separately that you should have done some investigations before.
Lou Jianbo: I just thought about some problems, I also read some information, this is definitely a market, determined by the relationship between supply and demand. If I put a little more on it, I think it's the demographic structure.
Moderator: now the state proposes a "two child" policy, calling on everyone to have a second child.
Lou Jian Bo: Yes. In addition, there is economic development, if the economic development is slow, then of course, housing prices can not rise, if the economic development is good, a lot of labor force are coming to the city, then the price will certainly become higher. Third
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