2025 Rent Increase Capped at 2.3 Percent

THE RENTAL CAP IS BEING IMPLEMENTED TO SAFEGUARD HOUSING TENANTS IN LOWER-INCOME BRACKETS AND OTHER BENEFICIARIES FROM EXCESSIVE RENT INCREASES.

- By HENRY L. YAP, UAP, FPIEP, EAROPH

Residential units with monthly rent of P10,000 or less may only be increased a maximum of 2.3 percent for the period January 1, 2025 to December 31, 2025, as per the National Human Settlements Board (NHSB) Resolution No. 2024-001. This adjustment is a reduction from the previously set four percent increase for the period January 1, 2024 to December 31, 2024.

The NHSB, as the sole policy-making body responsible for providing overall policy directions and program development to various key shelter agencies, acting upon the recommendation of the National Economic and Development Authority (NEDA), passed the new resolution.

The rental cap is being implemented to safeguard housing tenants in lower-income brackets and other beneficiaries from excessive rent increases. The measure was enacted pursuant to Republic Act No. 9653, commonly known as the Rent Control Act of 2009.

Hereunder are additional information to take note of:

WHO ARE COVERED?