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N.S. rent cap staying for another 2 years, but annual limit is going up

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Nova Scotia rent cap staying for another 2 years but annual limit going up
WATCH: The Nova Scotia government is extending the provincial rent cap until 2025.The province says while the cap will rise next year, this helps address concerns from tenants and landlords. But both sides are giving different reviews of the news. Callum Smith reports – Mar 22, 2023

Nova Scotia has announced it is extending rent control for the next two years, with higher yearly increases allowed.

In a Wednesday release, the province said the new temporary rent cap will be increased to five per cent per year, beginning Jan. 1, 2024 until the end of 2025.

“Nova Scotians are facing challenging financial times, and that factors greatly in every decision we make,” said Service Nova Scotia Minister Colton LeBlanc in the release.

“We are always working to balance the rights and needs of tenants and landlords. Extending the rent cap by two years will protect renters while adjusting the amount rent can increase will support landlords,” he wrote.

This comes as the current rent control legislation, limiting residential rent increases to two per cent per year, is set to expire in December.

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In August of 2021, Premier Tim Houston said he didn’t believe extending rent control past the state of emergency — brought on by the COVID-19 pandemic — was a solution to the housing crisis.

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However, he had a change of direction later that year, and the Progressive Conservative government extended the cap until the end of 2023.

Since then, housing advocates have called for a permanent rent cap and tighter regulations for landlords as Nova Scotians deal with a record-high cost of living and a housing crisis.

Though landlords cannot go above the set threshold for existing tenants, fixed-term leases can be renegotiated at the end of their term. That means landlords can skirt the temporary rent cap as it does not apply to new tenants.

At a Nova Scotia NDP town hall meeting last week, residents spoke out about struggles to find affordable housing in the province.

One resident, Beth Hayward, said her daughter and her roommates are being pushed out of their home because of a “loophole” in fixed-term leases.

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“They signed a fixed-term lease, it’s coming up later this spring,” Hayward explained in the Mar. 16 meeting. “The landlord has said to them, ‘I want you out because there are people willing to pay more.’”

About one third of Nova Scotians are renters, according to the province.

In Wednesday’s announcement, the government said the new five per cent cap beginning in 2024 will mean that rent of $1,500 per month could increase to $1,575.

The province also said any additional cost to a tenant for services included in the lease, including parking or utilities, is also considered a rental increase.

Housing advocacy group ACORN said in a statement Wednesday extending the rent cap is a welcome decision.

“We believe keeping it below inflation is the right move for tenants during this period,” said Tim Allenby, the Dartmouth ACORN co-chair.

“That said, low income Nova Scotia tenants need more protection in the long term so we can ensure housing security for all. ACORN is proud of its role in winning more rights for Nova Scotia tenants these last few years, and we will continue to apply pressure in favour of banning fixed term leases, ban renovictions, and securing fair rent control for all.”

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— With files from Aya Al-Hakim and Skye Bryden-Blom. 

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