IRAC to allow much higher rent hikes on P.E.I. next year, and minister vows to intervene

The Island Regulatory and Appeals Commission has set limits on maximum allowable rent increases that will take effect on Jan. 1, 2023 — and Prince Edward Island's Progressive Conservative government is vowing to fight them.

In a written statement, the commission said the increases are based on a Consumer Price Index (CPI) formula that helps determine how much rental owners spend operating their rental units.

Starting next year, IRAC said, a maximum allowable rent increase of 5.2 per cent will apply for unheated rental units or those heated with sources other than furnace oil. The same rate of increase will apply for rental mobile home units located in a mobile home park.

A maximum allowable rent increase of 10.8 per cent will apply to any rental units that are heated with furnace oil and have heat included in the rent.

IRAC said that in setting the limits, the commission also considered submissions received from 65 landlords and 201 tenants, as well as 109 submissions that didn't specify whether they were from tenants or landlords.

P.E.I.'s minister of social development and housing, Matthew MacKay, was quick to issue a statement in response to the increases. 

"Now is not the time to introduce record high rental increases in this province. Full stop," the statement began. 

"I am working with staff in the Department of Social Development and Housing to explore all options to intervene on this decision as soon as possible.

"At a time when we are experiencing a housing crisis, compounded with record high inflation, we cannot expect Islanders to pay 5-10% more in rent next year. It's just not in the cards."