The National Human Settlements Board (NHSB) has authorized a four-percent increase cap for monthly residential rental rates of P10,000 and below effective beginning 1 January until 31 December 2024.

This is 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, said NHSB.

NHSB Resolution No. 2023-03, approved 13 October and published 16 December, provides for the continuous implementation of rental regulation under the terms and conditions set forth of its predecessor policy, NHSB Resolution No. 2022-01.

The increase cap 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 DHSUD Undersecretary Henry 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 said.

The above resolution aids the Republic Act No. 9653 or the Rental Control Act of 2009 which declares the State's continuing program of encouraging the development of affordable housing to protect tenants in the lower-income brackets and other beneficiaries from unreasonable rent increases.

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.