President Arroyo on Tuesday signed into law the Rent Control Act of 2009, which protects tenants from indiscriminate rent increases.

Malacañang said in a statement that one year from the affectivity of the new law, no rent increases should be imposed in any residential unit covered under the act.

After the one-year moratorium on housing rental increases, the new law caps hikes to only seven percent per year until the end of December 2013.

Violators will face stiffer fines ranging from P25,000 to P50,000.

Vice President Noli de Castro, concurrent chairman of the Housing and Urban Development Coordinating Council, said the new law "complements the government's efforts to ensure affordable housing, especially for those who are earning less."

He added:"This brings much-needed relief to housing tenants during this time of crisis. The bottomline is to keep families' monthly expenses for housing low, so that they still have money for other needs."

An estimated 1.6 million families will benefit from the new law.

Malacañang said that based on the 2006 Family Income and Expenditure Survey, about 1.6 million families are renting nationwide with about 1.55 million or 96 percent paying monthly rent of P10,000 or less.