New Brunswick\u2019s short-lived rent cap may end up haunting the government of Premier Blaine Higgs.<\/p>\n
ACORN NB, a group that advocates for tenants\u2019 rights, held a \u201cmock funeral\u201d for the 3.8 per cent cap this week in downtown Moncton, complete with a faux-coffin and mourners dressed in black.<\/p>\n
\u201cThe rent cap was a dearly loved housing policy for working-class tenants across the province, providing much-needed relief from rent gouging,\u201d ACORN NB co-chair Peter Jongeneelen said in a eulogy for the policy.<\/p>\n
Following widespread reports of massive rent increases, the Higgs government introduced a budget in March 2022 that included the temporary rent cap, retroactive to January. The policy expired at midnight on New Year\u2019s Eve.<\/p>\n
Jongeneelen said rent control prevented his own landlord from raising his rent by 11 per cent.<\/p>\n
He called the government\u2019s decision to end rent control a \u201cslap in the face\u201d for low- and moderate-income tenants, especially considering recent tax cuts for landlords.<\/p>\n
Last year, the provincial government reduced property taxes on non-owner-occupied housing by 50 per cent. For years, landlords have insisted that New Brunswick\u2019s so-called \u201cdouble tax\u201d on rental properties inhibits the construction of apartments, limiting supply and driving up prices.<\/p>\n
In an email, the head of New Brunswick\u2019s association of landlords said it\u2019s a \u201cfallacy\u201d to claim that landlords will save money because of property tax cuts, once surging property values are factored into the equation.<\/p>\n