The National Human Settlements Board (NHSB) has announced a significant reduction in the allowable annual rent increase for residential units priced at PHP10,000 or below per month. The new cap, set at 2.3 percent, marks a decrease from the previous year’s 4 percent limit and will be effective from January 1 to December 31, 2025, as per NHSB Resolution No. 2024-001. This decision was influenced by a recommendation from the National Economic and Development Authority (NEDA) and was formalized in December 2024 by Undersecretary Henry Yap on behalf of the Department of Human Settlements and Urban Development (DHSUD) and NHSB Chair Jose Rizalino Acuzar. The adjustment aims to protect tenants in lower income brackets from steep rent hikes, in line with the Rent Control Act of 2009 (Republic Act 9653). The cap applies to units occupied by tenants as of 2024 who continue their tenancy into 2025, but does not affect units with monthly rents exceeding PHP10,000. If a unit becomes vacant in 2025, landlords can set a higher rent for new tenants. For boarding houses and similar accommodations, only one rent adjustment is permitted in 2025. New units constructed or leased in 2025 can establish their own rental rates. Looking ahead, a further reduction to a 1 percent increase will apply in 2026 for units under PHP10,000, while units above this threshold will remain exempt. Tenants facing disputes are encouraged to use the Barangay Justice System for mediation before resorting to court action, with potential penalties for landlords found violating the rent cap including fines or imprisonment.
Government Slashes Maximum Rent Increase for Affordable Housing
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