Ontario says it's limiting the max rent increase for 2023 to 2.5%. Critics say it's still too high

Ontariohas setthe maximum allowable rent increase for landlords next year lower than the rate set by Canada's currentrecord-high inflation rates, the government announced Wednesday.

Premier DougFord's re-elected government said in a news release it's limiting the increasedue to the rising cost of living.

The Ontario NDPfired back, saying it's"dead wrong" to greenlight a rent hike at all right now, saying in a statement "people are squeezed more than ever before."

The provincial rent increase guideline the highest a landlord can increase most tenants' rents without the approval of the Landlord and Tenant Board will be raised to2.5 per cent in 2023.

Based on the Ontario Consumer Price Index, inflation would result in a guideline of 5.3 per cent, according to a government press release. However, the province has capped that amount "to help protect tenants from significant rent increases."

The rent increase guideline for 2022 is 1.2 per cent.

The guidelineapplies to the majority of rental households under the province's Residential Tenancies Act about 1.4 million of them. It does not apply to vacant units, community housing, long-term care homes or commercial properties.

Also excluded from the guideline arerental units occupied for the first time after Nov. 15, 2018the date that Premier Doug Ford's Progressive Conservative government scrapped rent control for new buildings.

The NDPispushing for a rent stabilization law that would banunlimited increases in between tenants, as well as rent controls on all homes in Ontario.

"It's got to stop,"NDP MPP Jessica Bell said in a statement issued Wednesday.

"We need a premier focused on making housing affordable, not a premier taking more money away from people."