B.C. caps allowable rent increases at 3.5 per cent, 2 points lower than inflation

The British Columbia government has set the allowable rent increase for next year at 3.5 per cent.

The rate is more than two percentage points below the 12-month average inflation rate of 5.6 per cent. 

Housing Minister Ravi Kahlon says in a statement that costs have been increasing, especially for housing, at a rate that's unsustainable for many people, and this increase is a balance to protect renters, while keeping units on the market. 

The increase can be effective on or after Jan. 1, 2024.

Opening 58 new homes with @MableElmore under a co-operative model that secures residents ongoing affordable housing with below market rates.

We know there is more work to do - but today we ensured 58+ more seniors in Vancouver have increased access to housing in their community. pic.twitter.com/na3JdDnGmP

— Ravi Kahlon (@KahlonRav) September 11, 2023

The government says landlords must provide three months' notice to tenants and they are only allowed to hike the rent once a year. 

Before 2018, the annual allowable rent increase was based on inflation plus two per cent, a freeze was put in place during the pandemic and then the province set rent increases at two per cent for this year.