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Rent control is not the solution: New Brunswick plans to remove the cap on rent increases imposed in 2022

Rent control is not the solution: New Brunswick plans to remove the cap on rent increases imposed in 2022

The APQ will follow the evolution of this file of capping increases because, even if these changes affect only rental housing owners in New Brunswick, their experience and the repercussions are major arguments when demanding the withdrawal of rent control in Québec.

In Québec, rent control is already in effect by maintaining clause G and the rates of increase issued each year by the Administrative Housing Tribunal (TAL).
And Québec is also experiencing a situation of even stricter control than anywhere else since maintaining the rent price applies to the housing and depends not just on the occupying tenant. Landlords cannot adjust to the market price at the time of the tenant’s departure the rent paid for years by the tenant who VOLUNTARILY decides to leave the dwelling.

Let us first look at the facts:
In June 2022, the New Brunswick Higgs Government introduced a measure to cap rent increases at 3.8% per year(1). According to the Government, this measure was put into effect to reduce the impact of the housing crisis on tenants.
“As part of the legislative changes, rent increases are capped for one year, retroactive to January 1, 2022 and December 31, 2022, at 3.8 per cent, the increase in the New Brunswick Consumer Price Index for 2021. Previous rent increases that are below this cap would not change.”

This cap applies only to new leases, unlike in Québec(2).

But on Oct. 12, the NB Service Minister Mary Wilson said the cap on increases had not had the desired effect of addressing the lack of affordable housing. Rather, she believes the cap has discouraged rental housing owners from building more dwellings.

The Minister says she has not yet decided, so it will be necessary to verify in a few weeks’ time the final decision taken.

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Québec Landlords Association

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