BC capping rent increases at 3% in 2025

Renters in BC will receive a little of a break heading into the new year.

Today (Monday), the province tied the annual allowable rent increase in 2025 to inflation at 3%, down from this year’s spike 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 rent increase for 2025 cannot take effect prior to Jan. 1, 2025.

Since 2017, the province has taken steps to assist 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.

“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.”

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.

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.