Annual Rent Increase For 2025 To 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.”

Government policy prior to 2018 allowed for an additional 2% rent increase on top of inflation.

Since 2017, the Province says it has taken steps to better protect renters, including banning illegal renovictions, strengthening the financial penalties for landlords who evict tenants in bad faith, and improving wait times at the Residential Tenancy Branch by 64% since November 2022.

Next year’s change follows multiple years of the Province capping the annual allowable increase 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.

To learn more, visit Government of British Columbia.