Provincial Liberals announce rent rate hike in 2012

TORONTO, Ont. - The McGuinty Liberals announced Friday that they are going to change the way Ontario's rent increase rate is set, directly after announcing one of the largest rate increases in years.

Rick Bartolucci, Ontario's Municipal Affair and Housing Minister, made the promise after announcing that landlords would be able to increase their tenants' rent rates by up to 3.1 per cent in 2012.

"We believe we have to revisit the legislation," Bartolucci said. "Fix the legislation so that the increase reflected is in line with what's happening in the real world for those who rent."

The rent increase guideline is currently set according to the consumer price index, which incorporates inflation into how much more everyday items cost than they did the year before.