As cranes dot the downtown Victoria skyline, housing industry advocacy group LandlordBC warns the supply of purpose-built rental housing could slow if the provincial government enacts further rent control measures. Citified.ca
BC housing minister to review annual rental rate increase formula
CITIFIED.CA STAFF
Published August 30, 2017
British Columbia’s new housing minister is set to review the province's formula governing annual rental rate increases for rental housing.
In an interview earlier this week, Minister Selina Robinson said she was “curious" to learn how the numbers are calculated and whether the two per-cent-plus-inflation limit is appropriate.
“As a new minister I need to understand what all the pieces are, and I’m very curious where this formula came from and what is the rationale,” Robinson said according to the Vancouver Sun.
The minister further added that her government is aware of the housing pressures facing British Columbians and that cost-cutting measures her ministry “can deliver ASAP” need to be identified.
David Hutniak, CEO of rental housing advocacy group LandlordBC, says that while the minister’s goal of increasing housing affordability is laudable, altering the rental rate increase formula could have an unintended effect on British Columbia’s supply of rental housing.
“The government is aware that if they disincentivize the construction of purpose-built rental housing, the supply of rental apartments could actually drop and the cost to rent existing housing will rise,” Hutniak says.
“Landlord’s costs have gone up, taxes have gone up, utility costs have gone up, insurance costs have gone up, and in some cases they’ve gone up by double digits. It would be unreasonable to contemplate changing the rental increase formula in light of the added cost pressures currently faced by the industry."
The maximum rental rate increase for 2018 is 4%, or $50 per month on a $1,250 per month apartment. The maximum rental rate increase for 2017 was 3.7%. Since 2004, the lowest annual rental rate increase was 2.2% in 2014.” C
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