This week, the Ontario government delivered their fall economic statement, otherwise known as a ‘mini-budget,’ which is usually a preview to the actual budget they will provide in the spring of 2019.
Among the news announced is a lower deficiency by $500 million, cancellation of certain commonplace watchdog agencies and extending LCBO hours.
In any case, there is one bit of news that is important for those of you who rent: the province is declaring plans to move back rent control for a few tenants.
“To make rent more affordable and promote housing development, the government proposes to stay faithful to its commitment to preserving rent control for existing tenants, yet urge developers to construct more rental lodging by exempting new rental units from rent control,” Finance Minister Vic Fedeli said.
Rent controls were brought in by the past Liberal government on every single private unit to address the issue of affordable housing availability.
With the PC government’s proposition, new rental units won’t be liable to rent control, however, tenants who live in more secure groups that right now keep rent control enactment will at present be the shield from higher-than-expected increases.
Tenants in more up to date units, then again, could confront more extreme rent increments going ahead.
Fedeli additionally reported plans to cancel the “expensive and ineffective” Development Charges Rebate Program, something it says will make funds of roughly $100 million more than four years.
Usually, there were reactions from different parties and peoples over the rents control changes.
The Ontario government NDP released this statement, calling attention to that scrapping rent controls will only result in housing prices being driven up higher.
“Things were at that point getting harder and harder for such a large number of people simply attempting to make ends meet and get ahead of the bills,” said NDP Leader Andrea Horwath. “Rather than settling that, it looks like Doug Ford is hell-bent on making people pay more for the things they need in life.”
Liberal MPP Michael Coteau resounded the concerns over affecting living costs, although one person reacted to his tweet said rent control was reallocating wealth (otherwise known as ‘government authorized robbery’)from those who made the risk of purchasing and are trying to pay off the mortgages.
Doug Ford is cancelling #rentcontrol on all new buildings. This will make living costs across Ontario and especially Toronto even more expensive! This is not a government for the People. #onpoli #FES #TOPoli
— Michael Coteau (@coteau) November 15, 2018
Toronto city councilor Kristyn Wong-Tam called it “class warfare” launched by the ‘regressive’ Doug Ford government.
The class war fare launched by Doug Ford's mean-spirited government continues. Their regressive policies including removal of rent control is going to make Toronto and Ontario less affordable and livable. That's unacceptable. We must fight this. #ONpoli #TOpoli https://t.co/xnaJs0hGox
— Kristyn Wong-Tam (@kristynwongtam) November 15, 2018
Former Toronto city planner and mayoral candidate Jennifer Keesmaat had a more poignant observation when rent control rollbacks were announced.
Toronto has an affordable housing crisis. Today, following Provincial announcements which included rolling back rent controls, a small group of developers joyous laughter could be heard echoing throughout the halls of Queen's Park. (This isn't a metaphor. This actually happened.)
— Jennifer Keesmaat (@jen_keesmaat) November 16, 2018
It is just simple economics. Rent controls = no construction = housing crisis. No rent controls = increased supply and reduced demand = stable pricing.
— Paul Grenier (@PaulGrenierTV) November 16, 2018
But one man in response to Keesmaat said it was just a matter of economics:
The issue of rent controls in Ontario and other jurisdictions is undoubtedly going to be a hot topic in the years ahead as housing is always an important topic on people’s minds.
To read more about the Ontario government rent control changes, click here.
BONUS: if you want to read a rather insightful article on rent controls, click here.
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