Canadian province have capped rent increases
The threshold interest is set below the rate of inflation.
In 2024, the maximum increase of rents in British Columbia will be 3.5%. This means that for the second year in a row, the maximum allowable increase is set below the rate of inflation. This was announced by Ravi Kahlon, Minister of Housing. The average inflation rate over the past 12 months was 5.6%.
The B.C. government remains focused on supporting tenants. The authorities regulate the percentage of the maximum possible fee increase. Until 2018, this was calculated using an "inflation plus 2%" formula, then reduced to the rate of inflation, and during the COVID-19 pandemic years, the ability to raise rents was frozen. In 2023, the allowable price increase was already 2% — with an inflation rate of 5.4%. And since January 1, 2024, it will rise again, as indicated, to 3.5%. However, this is still appreciably less than the inflation rate.
"Across the country, costs have been increasing — especially for housing — at a rate that’s unsustainable for many people", said Kahlon. "We know that’s the case for both landlords and renters, and that’s why we’ve found a balance to protect renters while helping to keep rental units on the market".
According to the British Columbia law, landlords can raise prices once every 12 months. However, they must give tenants at least 3 months' notice. Since 2017, the province has banned illegal renovations and increased fines for landlords who unfairly evict tenants.
As inflation returns to normal levels, the province also intends to return to annual rent increases tied to the consumer price index. In the meantime, the government is trying to support the population, including investing in social housing.
