Annual rent increase for 2025 will be tied to inflation

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.