BC Government Announced That It Is Cutting Next Year’s Allowable Rent Increase to 2.5%
“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 to renters.”
On Sept. 7th, the government announced that, based on the consumer price index and the formula used for rent increases, the maximum annual allowable rent increase for 2019 would be 4.5%. The formula, which has been in place since 2004, allows for rent increases equal to the rate of inflation plus 2%.
However, on Monday the rental housing task force announced its recommendation to change the formula and tie the annual allowable rent increase to the rate of inflation only. The recommendations also included a stipulation that allows landlords to apply for an additional increase on top of the inflation rate, but they would have to prove that the new formula would not cover maintenance and other costs.
Three weeks after announcing the 4.5 % rental increase for 2019, and just two days after the rental housing task force recommended limiting increases to the rate of inflation, on Wednesday, the BC Government announced that it is cutting next year’s allowable rent increase to 2.5 %.
Source: Western Investor