posted January 5 2016
The Housing and Urban Development Coordinating Council (HUDCC) has extended the rent control regulation for residential units occupied by low-income brackets for another two years until December 2017.
Effective January 1, 2016 until December 31, 2017, the rent of any residential unit for those paying monthly rent of up to P3,999.00 shall not increase by more than 4% per annum. On the other hand, monthly rentals of P4,000 up to P10,000.00 shall not be increased by more than 7% per annum provided that the unit is occupied by the same lessee. This regulation applies to all residential units covered by the specified monthly rent, across the country.
The rent control regulation was extended pursuant to the authority given to the HUDCC under Republic Act 9653 or the Rent Control Act of 2009 to determine whether to continue or discontinue the regulation based on a study of its implementation and to adjust the yearly rate increase accordingly. The law aims to protect poor and middle-income families from unreasonable rent increases.
Based on the original provisions of the law, the rent of any residential unit for those paying monthly rent of up to P10,000.00 in highly urbanized cities, or up to P5,000.00 in all other areas shall not increase by more than 7% per annum provided that the unit is occupied by the same lessee.
The said rental regulation provisions expired on December 31, 2013. The HUDCC first extended rent control at status quo rates for two years or up to December 2015.
For the benefit of the poor and middle-income families, HUDCC yet again extended the rent control up to December 31, 2017 based on a study undertaken by the Philippine Statistical Research and Training Institute of the Philippine Statistical Authority.
The study found that 82% of the renters in the country are renting at less than P4,000 per month. Based on the requirement of the rent control law to consider inflation rate in determining any adjustment of the rental rates, the study noted that the average inflation rate in 2014 is at 4.1%, which was used as basis for the annual increase in rent for families renting at below P4,000 per month.
The said cap for the increase in rent will benefit the entire low-income family renters and is consistent with the intent of RA 9653.
Source : hudcc.gov.ph