Rent control extended for two years - Binay


Posted at Dec 18 2013 11:34 AM | Updated as of Dec 19 2013 01:50 AM

MANILA - Vice President Jejomar Binay announced Wednesday that rent control will be extended for two more years amid the recent increase in power rates and the natural calamities that devastated the country.

Binay, who is also chairman of the Housing and Urban Development Coordinating Council (HUDCC), said the rent raise cap applies to residential units in the National Capital Region (NCR) and other highly urbanized cities whose monthly rent does not exceed P10,000, and those in other areas with rental rates up to P5,000 a month.

Under the Rent Control Act of 2009 (RA 9653), which will expire on December 31, rents of these housing units shall not be increased by more than seven percent annually as long as the units are occupied by the same lessees.

Section 6 of the same law grants HUDCC the authority “to continue the regulation of the rental of certain residential units, to determine the period of regulation and its subsequent extension if warranted, to determine the residential units covered and to adjust the allowable limit on rental increases per annum."

Binay said the HUDCC anchors the rent control on the study made by the Statistical Research and Training Center (SRTC), an attached agency of the National Economic and Development Authority (NEDA).

Preliminary results of the study showed that about 1.5 million households or 7.2 percent of the total 21.5 million households nationwide are renters. Of this, 97 percent pay P10,000 and below monthly.

Vis-a-vis the income capacity, the monthly average of families in the country is at P23,968. In NCR, the average income is at P27,246 and P20,794 for other areas.

This means rent in NCR is 12.4 percent of income.