DARTOUTH: The Nova Scotia government’s rent cap is the number one reason property owners are selling their rental units.
That’s one of the major findings of a new survey conducted by the Investment Property Owners Association of Nova Scotia (IPOANS).
Rental property owners who sold their units in 2022 or are planning to sell in 2023 were asked to identify the primary reason for their decision:
· 39.8% said the financial impact of the province’s rent cap;
· 23.15% said increased costs to own and operate rental properties; and
· 10.2% said the unfair residential tenancies system to rental property owners.
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“This survey confirms what we have been hearing for the last two years and what we warned MLAs and the government about 18 months ago – the rent cap is forcing people out of housing and making the housing crisis worse,” said Kevin Russell, Executive Director of IPOANS.
“It’s no surprise to see homelessness going up under the provincial government’s rent cap and sadly, we are likely to see even more people without homes because of the financial impact of the rent cap on those who own properties.”
Among the other survey results:
· 27% of rental property owners sold their units in 2022 – with more than 40% of those sales going to new owners who planned to move in;
· 29% plan to sell their properties in 2023, with an additional 36% considering selling their properties; and
· 24% plan to sell their properties in 2024, with an additional 41% considering selling their properties.
“The rent cap is creating an exodus of rental property sales, with new owners moving in and tenants being forced out,” added Russell.
More than 160 IPOANS members responded to the survey.
A copy of the full survey and results is available here, 2023 IPOANS Rental Market Survey.