Yesterday's announcement was made by Minister of Health, Social Services and Housing the Hon. Quinton Edness .

And it comes after a radical change in the way BHC property rents are worked out.

Mr. Edness told MPs the rent hikes -- to be phased in from August 1 over three years -- came in the wake of a widespread review of BHC properties.

After the review, it had been decided BHC rents would be set at market levels, rather than annual rental values, he explained.

"The results of the assessment indicated that the total annual rents being charged to tenants of the 315 Bermuda Housing Corporation-owned rental units were some $1.3 million less the total of the market rents of the properties.'' This meant tenants would face across-the-board increases.

Mr. Edness added it was also agreed that tenants strapped for cash could seek help under the housing allowance and social assistance programmes run by the Financial Assistance Department.

He announced the following rises: Where current rents are 12.5 percent or less than the market level, they will be increased from August 1 this year; Where the gap is between 12.5 and 25 percent, rents will go up by 12.5 percent on August 1, and by 12.5 percent or less, whichever is appropriate, on August 1, 1996; Where the difference is between 25 and 37.5 percent, rents will increased by 12.5 percent on August 1, 12.5 percent on August 1, 1996, and 12.5 percent or less, whichever is appropriate, on August 1, 1997; and Where the gap is 37.5 percent or greater, rents will be pushed up by one third of the difference on August 1 of this year, 1996, and 1997.

Said Mr. Edness: "It was recognised that, under the existing arrangements, a number of tenants may be receiving subsidies which are greater than the amounts they would be eligible to receive under the housing allowance and social assistance programmes.

"Therefore, during the phasing-in of the new rent increase, individual cases of hardship will be addressed by either adjusting the rate at which their rent is increased or by making special arrangements, on an interim basis, under the social assistance programme.''