QUEEN'S PARK — The Ontario government is telling landlords they must cap rent increases at 2.5 per cent next year, despite the fact inflation is currently pacing much higher.
The Ministry of Municipal Affairs and Housing says 2.5 per cent will be the maximum allowable increase that can be imposed on tenants without seeking prior approval from the Landlord and Tenant Board.
The annual guideline is typically based on the province's Consumer Price Index.
Due to recent inflation, the ministry says this would result in a 2023 guideline of 5.3 per cent.
In an announcement Wednesday, Minister Steve Clark said the government is seeking to provide stability and predictability to the vast majority of tenants by capping the rent increase maximum below inflation.
The guidelines apply to about 1.4 million rental households covered by the Residential Tenancies Act.
It does not apply to rental units occupied for the first time after Nov. 15, 2018, vacant residential units, community housing, long-term care homes or commercial properties.
Interim NDP leader Peter Tabuns said 2.5 per cent is still higher than many people's annual salary increase, and that this size of a rent hike will hurt people across the province.
