The National Human Settlements Board has set a maximum of 2.3 percent increase in rental for residential units with a monthly rate of P10,000 or less — down from last year’s four percent cap.
Department of Human Settlements and Urban Development Secretary Jose Rizalino Acuzar, NHSB chairperson, said under NHSB Resolution No. 2024-001, the maximum increase in monthly rentals for covered residential units is effective Jan. 1 up to Dec. 31 this year.
As the sole policy-making body responsible for providing overall policy directions and program development to various key shelter agencies, and acting upon the recommendation of the National Economic and Development Authority, it passed the new resolution last December under the Rent Control Act of 2009 (Republic Act No. 9653), the NHSB said in a statement.
The rental cap is being implemented to safeguard housing tenants in lower-income brackets and other beneficiaries from excessive rent increases.
It applies to residential units currently occupied by the same tenants as of 2024, who pay P10,000 or less per month, and who would continue to occupy or renew their lease in 2025.
Units with rents exceeding P10,000 per month are exempted from the restriction.
If a unit becomes vacant in 2025, the lessor may increase the rent of a new tenant beyond the set limit.
An increase is permitted because the new tenant is not covered by the aforementioned resolution but in the case of boarding houses, dormitories, rooms and bed spaces, only one rent adjustment is allowed within 2025, even if the increased limit has not been reached.
New residential units built and/or leased out in 2025, on the other hand, may set the amount of their rent unilaterally, it was also stated.
A new limit of one percent shall apply to units occupied by the same tenants as of 2025, paying P10,000 or less per month, and who will continue to occupy/renew their lease in 2026.
Residential units with rents above P10,000 per month in 2025 are excluded from the 2026 rental cap.
The tenant is encouraged to seek alternative dispute resolution with his landlord or lessor through the Barangay Justice System’s mediation/amicable settlement process.
Should the lessor be found guilty, he or she could face a fine of not less than P25,000 nor more than P50,000 or imprisonment of not less than one month and one day to not more than six months or both, depending on the court’s decision, the NHSB warned.
