Image: The Canadian Press / Housing Minister Ravi Kahlon.

By Mike Vanden Bosch

2025 rent increase

Province says annual B.C. rent increase in 2025 will be capped at less than inflation

Aug 26, 2024 | 8:22 AM

CHILLIWACK — The provincial government announced Monday morning (Aug. 26) that the maximum allowable rent increase for residential tenants in British Columbia will be capped at 3.0 per cent, a drop of 3.5 per cent from this year’s maximum allowable rise.

“Tying the allowable increase to inflation saves renters hundreds of dollars, over the previous government’s policy of inflation plus 2%,” said Ravi Kahlon, Minister of Housing. “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 province says the maximum annual allowable rent increase for 2025 cannot take effect prior to Jan. 1, 2025. The B.C. goverment says policies prior to 2018 allowed for an additional two per cent rent increase on top of inflation, costing the average B.C. family hundreds of dollars in additional rent.

Since 2017, the province argues it has taken steps to better protect renters, including banning illegal renovictions, strengthening the financial penalties for landlords who evict tenants in bad faith, protecting growing families by restricting rent increases if a tenant adds a child under 19 to their household, and improving wait times at the Residential Tenancy Branch by 64 per cent since November 2022.

The province also says it has introduced the annual renter’s tax credit, which provides $400 a year to low- and moderate-income renters across B.C., making the province the first Canadian jurisdiction to support the creation of province-wide rent bank services to facilitate interest-free loans for tenants in emergency circumstances.

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Next year’s change follows multiple years of the province capping the annual allowable increase well below inflation in 2023 and 2024, as well as a rent increase freeze in 2020 and 2021 to support renters during the COVID-19 pandemic. It represents a return to the standard formula of tying allowable rent increases in B.C. to the Consumer Price Index, as inflation begins to return to more normal levels.

“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,” said Spencer Chandra Herbert, Premier’s liaison for renters and MLA for Vancouver West End. “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% rent increase on top of inflation.”

As it relates to tenant services, the B.C. Residential Tenancy Branch has recently updated information related to the outright banning of air-conditioning (AC) units and passive cooling materials without a rational basis. This updated information provides examples of specific cooling measures, such as umbrellas, awnings, and reflective window coverings, and is intended to make the rules clearer for landlords and tenants. The Province encourages tenants with questions about adding AC units or passive cooling materials to their homes to speak with their landlord. If a resolution can’t be reached, a Residential Tenancy Branch information officer at 1-800-665-8779 can outline options.