The province of British Columbia announced that it has set the annual allowable rent increase for 2025 at 3 percent, a slight decrease from this year’s allowable increase of 3.5 percent.
“Pegging the allowable increase to inflation saves renters hundreds of dollars compared to the previous government’s policy, which was based on inflation plus 2%,” said Ravi Kahlon, Minister of Housing. “At a time when we know renters are struggling, our rent cap protects renters from unfair rent increases and allows landlords to cover rising costs so rental housing can stay in British Columbia’s housing market.”
According to the government, the policy before 2018 allowed an additional 2 per cent rent increase on top of inflation, costing the average British Columbia family hundreds of dollars in extra rent. Since then, steps have been taken to “better protect tenants,” including banning illegal renovations, toughening fines for landlords who evict tenants in bad faith, protecting growing families by limiting rent increases when a tenant adds a child under 19 to their household, and reducing wait times at the Residential Tenancy Branch by 64 per cent as of November 2022.
In addition, the province has introduced an annual renter tax credit that provides $400 per year to low- and moderate-income renters across British Columbia, and is the first Canadian jurisdiction to support the creation of nationwide rent banking services to provide interest-free loans to renters in times of need.
Next year’s change follows several years in which the province capped the annual allowable increase well below the rate of 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 this represents “a return to the standard formula” of linking allowable rent increases in BC to the consumer price index as inflation returns to more normal levels.
“Limiting the annual allowable rent increase to inflation is consistent with the Rental Housing Task Force’s recommendations to support renters and ensure rental housing remains available for renters,” said Spencer Chandra Herbert, Premier’s Liaison for Renters and MLA for Vancouver West End. “Limiting rent increases to inflation has saved BC families and households thousands of dollars since 2017 because we eliminated the old government’s automatic 2% rent increase on top of inflation.”
The maximum allowable annual rent increase for 2025 will take effect on January 1, 2025 and will not apply to commercial tenancies, non-profit tenancies where rent is income-related, co-op housing, and some assisted living facilities. If landlords decide to increase rent, they must comply with the Residential Tenancy Act and give tenants a full three-month notice of termination using the correct rent increase notice form. Rent cannot be increased more than once in a 12-month period.
Information on the annual permitted rent increase can be found at: https://www2.gov.bc.ca/gov/content/housing-tenancy/residential-tenancies/rent-rtb/rent-increases
