BC Chamber of Commerce Supports Phasing Out Provincial Control of Rent Increases
Rent control has been – and continues to be – a widely debated topic. Economists and business groups generally take a position against rent controls, while socially-minded advocacy groups generally stand in support of controlling residential rents. The former groups argue that rental housing stock decreases in both quantity and quality under rent controls; the latter groups argue that lower income individuals require protection from market effects.
Rent control policy in BC has become increasingly restrictive with successive governments. In the 1980’s the Bennett government allowed unlimited rent increases, with tenants only able to challenge rent increases above 15%. In the 1990’s the Clark government continued to not limit the amount of a rent increase, but required the landlord to justify increases in response to all tenant challenges. And in 2002, the Campbell government introduced the most stringent rent controls establishing limits on rent increases. Currently, rent control policy in BC limits rent increases during continuous occupancy (to inflation +2%), with landlords only able to increase rent to prices the market will bear when a new renter enters into a new rental agreement on a vacant unit, a practice common referred to as rent decontrol (Saskatchewan Chamber of Commerce, 2011). READ MORE…