Landlords will be allowed to increase rent by a maximum of 2.6% in 2020, according to an announcement this morning by the Ministry of Municipal Affairs and Housing.

This percentage is the province’s annual rate of inflation, as the maximum rent increase formula no longer adds 2% to the inflation rate as of last year based on the B.C. Rental Housing Task Force’s (RHTF) recommendations on the issue.

See also: B.C. government caps rent increase to 2.5% for 2019

“Renters need secure housing they can afford. That’s why we removed the additional 2% above inflation that the old government allowed for rent increases since 2004,” said Selina Robinson, Minister of Municipal Affairs and Housing.

“Under the old formula, renters would have seen a rent hike of more than 9% 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.”

According to the province, the removal of this extra 2% increase marks significant annual savings for renters across BC.

See also: BC Rental Housing Task Force recommends reducing rent increases by almost half

On the flip side, landlords will be able to apply to recover costs incurred in the previous 18 months for major capital improvements. The new system is expected to be ready for summer 2020.

Landlords in B.C. are allowed to increase rent once per 12 months, and are required to provide three months’ notice prior to instating this increase.