VANCOUVER (NEWS 1130) – It looks like anyone who rents across the province, is catching a break.
On Wednesday, Premier John Horgan is expected to announce the province will follow the recommendations laid out by B.C’s Rental Housing Task Force, and cap the allowable increase at the rate of inflation.
But the announcement may come too late for at least one developer.
Claiming such a move stifles the much-needed rental housing supply, Aly Jiwan, CEO of Redbrick Properties, says his company won’t be building hundreds of rental units in the region.
He says they’ve put the brakes on developments planned for the next two years and will focus instead on condos.
Jiwan expects the government to limit the allowable rent increase to nothing more than the cost of inflation and tweeted yesterday that a new formula will hurt developers and landlords.
We have now halted plans for 100s of new #PBRental units just over the next 12-24 months & will now focus on developing condos. Govt & public opposition to #PBR business is stifling much-needed rental housing supply. Price controls do not work & only make it worse for tenants. https://t.co/0toYFV8Ocd
— Aly F. Jiwan (@AlyJiwan) September 24, 2018
Jiwan referred all comments to Landlord BC.
Renters currently face a maximum rent increase of 4.5 per cent next year. It would be the steepest hike in 15 years.
The premier is holding a news conference at 1:15 p.m. today, when he is expected to announce he will follow suggestions laid out by the task force, which recommends dropping a two per-cent add-on above and beyond inflation.
The task force also recommends landlords be required to individually apply for additional increases, if they can prove the cost of maintaining or renovating a building is beyond inflation.
– With files from Peter Wagner