Wednesday, September 26 ~ BC. The Ministry of Municipal Affairs and Housing has cut the 2019 rent increase to ease pressure on renters, limiting it to inflation.
That means that effective Jan. 1, 2019, the annual allowable rent increase will be 2.5% (not 4.5% as the previous formula would have set).
“It’s simply not sustainable for renters, many of whom are on fixed incomes, to see their rent increase by more than inflation each and every year,” said Premier John Horgan.
“We have to eliminate the risk of such huge increases for renters. Our new approach strikes a balance between giving relief to renters while encouraging people to maintain their rental properties,” he said in a statement today.
The previous formula, set in 2004, allowed annual rent increases of 2% plus inflation.
“We recognize supply is key to bringing down rental costs in the long term, but renters have told us they are hurting and need help today,” said Selina Robinson, Minister of Municipal Affairs and Housing.
“That’s why we are taking careful steps to address the housing crisis and ease the pressure on renters, while also making sure that landlords have the tools they need to continue to invest in their rental properties,” Robinson said.
The government says that the Residential Tenancy Branch will work closely with landlord advocacy groups on expanded circumstances under which landlords could apply for an additional rent increase to reflect the costs of maintaining their rental properties.
“Our Rental Housing Task Force members have heard time and again that renters are struggling to pay yearly maximum rent increases, while basic repairs and building maintenance are left undone,” said Spencer Chandra Herbert, Rental Housing Task Force chair and Premier’s Advisor on Residential Tenancy.
“Taken together, these changes will make rent more affordable for British Columbians, while also helping ensure needed repairs are completed to maintain and improve rental housing,” said Herbert.