Legislation introduced last week would, if passed, ensure that the annual Rent Increase Guideline is capped at 2.5 percent to protect tenants and families.
The proposed changes also would ensure that the annual Rent Increase Guideline never falls below one percent.
Tenants would benefit from greater certainty that would ensure affordable and stable rents so they have safe and affordable housing.
For landlords, this would ensure a fair return so they can properly maintain rental properties.
The guideline would continue to be based on the Ontario Consumer Price Index.
If passed, the new guideline formula would take effect starting in 2013.
Ontario continues to build new affordable housing and repair existing units for families with housing needs.
The province’s investments in affordable housing have created thousands of jobs, and resulted in the construction and repair of 270,000 housing units and the provision of 35,000 rent supplements for Ontario families on fixed incomes.
“Capping rent increases would provide greater certainty and reduce year-to-year volatility in housing costs so that Ontario families continue to have access to affordable housing,” said Municipal Affairs and Housing minister Kathleen Wynne.
The Rent Increase Guideline is the maximum amount that most landlords can increase a tenant’s rent during the year without making an application to the Landlord and Tenant Board.
One million tenant households in Ontario are covered by the annual Rent Increase Guideline.
The average annual Rent Increase Guideline from 2004-11 was 1.89 percent. The average annual Rent Increase Guideline from 1993-2003 was 3.17 percent.
Ontario’s annual Rent Increase Guideline is based on the Ontario Consumer Price Index (CPI), which is a measure of inflation compiled monthly by Statistics Canada.