The National Human Settlements Board announced on Wednesday that it has approved a four percent increase cap for monthly residential rental rates of P10,000 and below effective 1 January to 31 December 2024.

According to the NHSB, the move is to avoid unwarranted increase in rental rates among lower income families.

NHSB Resolution 2023-03, approved on 13 October and published on 16 December 2023, provides for the continuous implementation of rental regulation under the terms and conditions set forth in its predecessor policy, NHSB Resolution 2022-01, but with modification in rate increase.

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 current administration.

Department of Human Settlements and Urban Development Undersecretary Henry Yap, representing Secretary Jose Rizalino Acuzar as the NHSB chairperson, said 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.

"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," Yap said.

Republic Act 9653, known as 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 also authorized the then-Housing and Urban Development Coordinating Council to regulate rental rates of certain residential units, among other related functions.