Dramatic rent hikes ‘unacceptable’

Premier Wynne agrees existing laws have failed to spur construction of affordable housing

It is “unacceptable” for landlords to dramatically raise rents on tenants — in some cases doubling them — to pad their profits in case rent controls are extended soon, says Premier Kathleen Wynne.

She called the problem “an extremely urgent matter” and said Housing Minister Chris Ballard has been working on it for months, as both rental and ownership housing markets have been red hot.

Her remarks Tuesday came after the Star reported a west-end condo landlord served notice to tenants, he is raising their rent to $3,300 monthly from $1,650 on July 1.

“No one anywhere in Ontario should lose stable housing because their rent has been increased dramatically.” CHRIS BALLARD HOUSING MINISTER

Wynne called that example “particularly egregious” after speaking to a long-term-care conference at a conference centre near the airport.

Under the current rent-control system, only buildings constructed before 1991 are subject to strict limits on how much rents can be raised under annual guidelines issued by the government.

Those increases are typically about 1.5 per cent a year.

“We’ll be looking at expanding rent controls as part of a whole rental tenancy act upgrade and we’ll be bringing that in sooner rather than later,” Ballard later told reporters at Queen’s Park. “No one anywhere in Ontario should lose stable housing because their rent has been increased dramatically.”

Critics have repeatedly raised concerns about bidding wars for rental apartments and condos as the area’s real estate market has become overheated, with many families also being outbid on houses they’d like to buy.

Diane Dyson of the Federation of Metro Tenants Association has called the situation “a bit of the Wild West” for people not living under rent-control protections. New Democrat MPP Peter Tabuns (Toronto-Danforth) recently proposed a private member’s bill to make all buildings subject to rent control. While NDP Leader Andrea Horwath would not commit to sweeping new rent-control measures if she becomes premier in next year’s election, she said passing the Tabuns bill would be “a really good first start” to improving the affordability of rental housing.

“There needs to be immediate action.”

Wynne said she agrees with affordable-housing activists who believe the existing rent controls, by exempting post-1991 buildings, have failed to spark enough construction of new rental accommodations.

“The reality is that there have not been rental buildings built in any comprehensive way.”

Progressive Conservative Leader Patrick Brown said his party would cut red tape for builders, but would not open up the Greenbelt of protected lands around the GTHA to encourage new construction.

“There’s a lack of competition, there’s a lack of supply,” Brown said.

“The reality is that there have not been rental buildings built in any comprehensive way.” KATHLEEN WYNNE ONTARIO PREMIER