New Democrat legislation would create real rent control, close fixed-term lease loophole

HALIFAX – As Nova Scotians grapple with unsustainable rent increases and unjustified evictions, the Houston government continues to refuse to address the abuse of fixed-term leases to get around Houston’s rent cap.

Nova Scotia New Democrats will re-introduce legislation today that would close the fixed-term lease loophole and ensure fairness and stability for the 30 per cent of Nova Scotians who rent.

“It is now clear in their own public filings that corporate landlords are using fixed-term leases to circumvent the rent cap. We have flagged this issue to the Houston government again and again, and their response is legislation that fails to close this loophole,” said Nova Scotia NDP Leader Claudia Chender. “This flawed policy incentivizes evictions, drives up market rents, and leads to widespread housing insecurity and, in some cases, homelessness. All Nova Scotians deserve to be safe and housed. This is the purpose of our legislation.”

The NDP legislation would ensure new renters and those on fixed-term leases also benefit from rent control by tying increases to the unit rather than the person. This means landlords would no longer be incentivized to evict a current tenant and raise prices for the next. It would also tie allowable increases to the Consumer Price Index (CPI) so both landlords and renters will have predictable and fair price increases. Landlords would be able to apply to raise the rent above the cap if they face extraordinary operational costs.

“Fixed-term leases are being used to undermine security of tenure and the rent cap, which is why actual rent increases have blown so far past five per cent,” said Gary Burrill, NSNDP Residential Tenancies spokesperson. “The Houston government keeps talking about balancing interests, even as they keep putting all the cards in the landlords’ hands. 300,000 people rent their homes in Nova Scotia, and every one of them deserves not to have to live under the threat of eviction at the end of a fixed-term lease.”

The NSNDP first tabled legislation to create real permanent rent control in Nova Scotia in 2017.

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