Existing tenants will only see their rent increase at the rate of inflation in British Columbia next year.

Today, the NDP government announced that under almost all circumstances, rent can only go up by 2.6 percent.

That's because last year, the cabinet amended an earlier rule allowing rent increases at two percent above the inflation rate.

“Renters need secure housing they can afford,” Municipal Affairs and Housing Minister Selina Robinson said in a news release. “That’s why we removed the additional two percent above inflation that the old government allowed for rent increases since 2004. Under the old formula, renters would have seen a rent hike of more than nine percent over 2019 and 2020. Because of our changes and the removal of the fixed-term loophole, people will no longer face the unreasonable rent hikes that were allowed for years.”

The executive director of the Tenant Resource and Advisory Council, Andrew Sakamoto, praised the province in the same news release. He noted that a 2.6-percent rather than a 4.6-percent hike will amount to "real savings for B.C. tenants".

"The creation of the compliance and enforcement unit has also been a positive development," Sakamoto added. "It is imperative that B.C. tenants have access to a government department that can quickly intervene in serious and urgent disputes, such as an illegal lockout from a rental unit.”

Landlord B.C. stated on its website that the residential tenancy branch has engaged it in "a robust series of conversations on what needs improvement regarding the current system of above regulation rent increase".

"Primarily this conversation has focused on creating a system whereby landlords can apply for additional increases to cover capital expenditures," the landlords group stated. "Like many processes in this industry there is a mandatory government form, notice period and timeframe that must be considered."

Tenant groups, antipoverty organizations, and Vancouver councillor Jean Swanson have repeatedly advocated for vacancy control, which would attach the regulation of rents to the unit rather than the tenant. This would prevent large increases when a person moves out and a new tenant occupies the suite.

Last year, the B.C. government chose not to implement this after hearing intense opposition from landlords and developers.

The Urban Development Institute released the results of a survey in which its members claimed that 12,361 of the 19,972 rental units in the planning process would be delayed or cancelled if vacancy control was introduced.

"This would be the single, most significant impediment to the construction of rental apartments,” UDI CEO Anne McMullin said at the time. “With record low vacancy rates, British Columbians need new rental homes but this proposal puts those in jeopardy.”

The Vancouver Tenants Union, on the other hand, has insisted that without vacancy control, "any investments made in public housing, financial supports for tenants, and new supply will not keep pace with the loss of affordable rental stock".

The VTU is urging its members to show up at a public hearing at Vancouver City Hall on Tuesday (September 10) to oppose a rezoning application in Marpole to develop two six-storey buildings at 8636 and 8656 Oak Street. The proposal calls for 91 secured market rental units.

According to the group, rents will be 71 percent higher than the current rates if the application is approved, even with a 30 percent discount for returning occupants. The VTU argues that this could lead to demovictions of more than 60 low-income tenants. It wants the city to guarantee to cap rent increases at 10 percent for these tenants.