Rent increase for 2025 capped at three per cent, tied to inflation

The annual allowable rent increase in 2025 will be down from this year’s increase.

The B.C. government said next year’s total increase will be capped at three per cent to reflect inflation.

That will be down from the 2024 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 per cent,” Housing Minister Ravi Kahlon, said.

“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.”

The maximum allowable rent increase will take effect January 1, 2025. Under the Residential Tenancy Act, landlords must inform tenants of rent increases three months before increasing the rates, and rents can only be increased once in a 12-month period.

“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,” Spencer Chandra Herbert, premier’s liaison for renters and MLA for Vancouver West End, said.

“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 per cent rent increase on top of inflation,” he said.

Along with capping the rent increases, the province has a new annual renter’s tax credit through the B.C. Rent Bank. The province said the first-of-its-kind program in Canada will provide $400 a year to low- and moderate-income renters throughout B.C.