NHSB sets 4% limit to any increase on house rental starting Jan. 1
The National Human Settlements Board (NHSB) has set a limit to any increase on house rental starting Jan. 1 in a bid to prevent exorbitant rent hike that would affect ordinary Filipinos.
In a resolution, the NHSB said house or residential units with P10,000 monthly rate and below are only allowed to increase the rent to a maximum of four percent of the monthly rental.
Department of Human Settlements and Urban Development (DHSUD) Undersecretary Henry Yap said the decision was based on the recommendation of the National Economic and Development Authority to set a uniform maximum percentage increase at the upper bound of the inflation rate target of the Marcos administration.
“The policy was reviewed and revised according to latest empirical studies, such as the Annual Family Income and Expenditure Survey and Census of Population and Housing,” said Yap.
“These data guided the decision-making process of the multi-agency NHSB to come up with the most sound, feasible and fair figure to represent the cap in rental increase,” he added.
Republic Act No. No. 9653, or the Rent Control Act of 2009, declares the State’s continuing program of encouraging the development of affordable housing to protect housing tenants in the lower-income brackets and other beneficiaries from unreasonable rent increases.
The law authorized the then-Housing and Urban Development Coordinating Council (HUDCC) to regulate rental rates of certain residential units, among other related functions.
When Republic Act No. 11201 was enacted, NHSB assumed this responsibility as the single-policy making body to provide overall directions and program development to attached shelter agencies of DSHUD.
A fine of P25,000 to P50,000.00 or imprisonment of not less than one month and one day to not more than six months, or both, shall be imposed on any person found guilty of violating any provision of the Rent Control Act.