The Province of BC announced it has set the annual allowable rent increase for 2025 at 3 per cent, down slightly from this year’s allowable increase of 3.5 per cent.
“Tying the allowable increase to inflation saves renters hundreds of dollars, over the previous government’s policy of inflation plus 2%,” said Ravi Kahlon, Minister of Housing. “At a time when we know renters are struggling, our rent cap protects renters against unfair rent hikes, while allowing landlords to meet rising costs so that rental homes can stay in B.C.’s housing market.”
According to the government, policy prior to 2018 allowed for an additional 2 per cent rent increase on top of inflation, costing the average B.C. family hundreds of dollars in additional rent. Since then, steps have been taken to “better protect renters” including banning illegal renovictions, strengthening the financial penalties for landlords who evict tenants in bad faith, protecting growing families by restricting rent increases if a tenant adds a child under 19 to their household, and improving wait times at the Residential Tenancy Branch by 64 per cent since November 2022.
In addition, the Province has implemented the annual renter’s tax credit, which provides $400 a year to low- and moderate-income renters across B.C., and is the first Canadian jurisdiction to support the creation of provincewide rent bank services to provide interest-free loans for tenants in urgent circumstances.
Next year’s change follows multiple years of the Province capping the annual allowable increase well below inflation in 2023 and 2024, as well as a rent increase freeze in 2020 and 2021 to support renters during the COVID-19 pandemic; the government says it represents “a return to the standard formula” of tying allowable rent increases in B.C. to the Consumer Price Index, as inflation begins to return to more normal levels.
“Tying the annual allowable rent increase to inflation is consistent with the recommendations from the Rental Housing Task Force to support renters and ensure that rental homes can stay available for renters,” said Spencer Chandra Herbert, Premier’s liaison for renters and MLA for Vancouver West End. “Capping rent increases to inflation has saved families and households in B.C. thousands of dollars since 2017, as we have eliminated the old government’s automatic 2% rent increase on top of inflation.”
The maximum annual allowable rent increase for 2025 will take effect Jan. 1, 2025, and does not apply to commercial tenancies, non-profit housing tenancies where rent is geared to income, co-operative housing and some assisted-living facilities. If landlords choose to increase rent, they must abide by the Residential Tenancy Act and provide a full three months notice to tenants using the correct Notice of Rent Increase form. Rents cannot be increased more than once in a 12-month period.
For information about the annual allowable rent increase, visit: https://www2.gov.bc.ca/gov/content/housing-tenancy/residential-tenancies/rent-rtb/rent-increases
