Max allowable rent increase won’t be 4.5 per cent next year

VANCOUVER (NEWS 1130) – There’s going to be some relief for renters in B.C.

Premier John Horgan and Housing Minister Selina Robinson have just announced next year’s rent hike won’t be the proposed 4.5 per cent. Instead, the increase will be limited to 2.5 per cent, or the rate of inflation.

When asked about how the cap might limit landlords’ ability to maintain their properties, Horgan responded that they should also learn to live within their means.

The premier said his government will continue to work with landlords, and is looking at ways to reduce costs. The increase will be effective as of January 1st of next year.

“By capping the increase in rents for regular people, we’re doing our best to make life affordable for British Columbians,” Horgan said. “We understand that whenever there’s a change in the status quo, some people are going to be uncomfortable with that, but we had over a million and a half renters that were looking at a 4.5 per cent increase when their wages have not gone up 4.5 per cent.”

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As for developers threatening to stop building rental stock, Horgan says his government is working with them to help reduce costs

“To not discourage the development of more rental housing –quite the contrary, but we need to make sure that the people of BC can live within their means. We have had a housing crisis, an affordability crisis for several years now.”

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Housing minister Selina Robinson said she recognizes housing supply is affecting the rental housing stock, but she hopes these measures will help address affordability in the short term.

“We recognize supply is key to bringing down rental costs in the long term, but renters have told us they are hurting and need help today,” she said. “That’s why we are taking careful steps to address the housing crisis and ad ease the pressure on renters, while also making sure that landlords have the tools they need to continue to invest in their rental properties.”

This announcement comes after recommendations were made two days ago from the province’s rental housing task force. That group also recommended landlords be able to request a greater increase if they can prove the cost of maintaining or renovating a building is higher than inflation.

The previous rent increase formula was created in 2004, and allows an increase of two per cent per year, plus inflation.

Advocate still concerned

Andrew Sakamoto, an advocate for renters with the Tenant Resource Advisory Centre, says he’s still worried about what happens when renters are forced to sign leases after a building has been renovated.

“I’m looking forward to seeing what other recommendations the Rental Housing Task Force will make to enhance tenant protections in the residential tenancy act, and how the task force will also plan to improve access to justice at the residential tenancy branch,” he said.

Sakamoto added that year after year, one of the most common complaints he gets has been about housing being unaffordable and many tenants have already seen their rents climb four per cent this year.