TORONTO - Landlords in Ontario will be able to increase rents up to 1.8 per cent next year, as rent controls are expanded under the Liberal government's housing plan.

The annual rent increase guideline is the maximum amount a landlord can boost a tenant's rent without needing the approval of the Landlord and Tenant Board.

Rent controls had previously only applied to private rental units built before November 1991, but the government removed that exception and it says that means 250,000 more tenants will get protection from unfair hikes.

The new rule is retroactive to April 20, when the government announced its housing plan, so any rent increase notices given on or after that date are subject to the cap.

The 2017 rent increase guideline is 1.5 per cent.