The Province is tying the annual allowable rent increase in 2025 to inflation at 3%, down from this year’s allowable increase of 3.5%.

“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 maximum annual allowable rent increase for 2025 cannot take effect prior to Jan. 1, 2025. Government policy prior to 2018 allowed for an additional 2% rent increase on top of inflation, costing the average B.C. family hundreds of dollars in additional rent.

Since 2017, the Province 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% since November 2022.

In addition, the Province has implemented the annual renter’s tax credit, which provides $400 a year to low- and moderate-income renters across B.C., and is the first Canadian jurisdiction to support the creation of provincewide rent bank services to provide interest-free loans for tenants in urgent circumstances.

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.”

To further support renters amid more frequent and severe heat waves, the 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. 

Quick Facts: 

• The maximum allowable rent increase is defined by the 12-month average per-cent change in the all-items Consumer Price Index for B.C. ending in July of the year prior to the calendar year when the rent increase takes effect.
• The 2025 maximum increase for manufactured-home park tenancies will also be 3%, plus a proportional amount for the change in local government levies and regulated utility fees.
• The rent increase does not apply to commercial tenancies, non-profit housing tenancies where rent is geared to income, co-operative housing and some assisted-living facilities.
• If landlords choose to increase rent, they must abide by the Residential Tenancy Act and provide a full three months notice to tenants using the correct Notice of Rent Increase form. Rents cannot be increased more than once in a 12-month period.

Learn More:

For information about the annual allowable rent increase, visit: https://www2.gov.bc.ca/gov/content/housing-tenancy/residential-tenancies/rent-rtb/rent-increases

To learn more about government’s new Homes for People action plan, visit: https://news.gov.bc.ca/releases/2023HOUS0019-000436

To learn about the steps the Province is taking to tackle the housing crisis and deliver affordable homes for British Columbians, visit: https://strongerbc.gov.bc.ca/housing/

To learn more about your rights as a renter or landlord in B.C., visit: https://www2.gov.bc.ca/gov/content/housing-tenancy/residential-tenancies

To learn more about policy protecting renters from extreme heat events, visit: https://www2.gov.bc.ca/assets/gov/housing-and-tenancy/residential-tenancies/policy-guidelines/gl8.pdf

To learn more about eligibility for rental assistance programs offered by BC Housing, please visit: https://www.bchousing.org/housing-assistance/rental-assistance-programs

To learn more about eligibility for BC Rent Bank assistance and services, please visit: https://bcrentbank.ca/how-to-apply/  

For a backgrounder about history of rent increases in B.C., visit: https://news.gov.bc.ca/files/Backgrounder_RentIncreases.pdf