The Coast: NSNDP promises to scrap fixed-term leases and lower rent cap if elected

The NSNDP have announced the first part of their housing plan—-they promise to abolish fixed-term leases and set a new rent cap if elected.

In a press release on Oct 31, party leader Claudia Chender said if the NDP form the next government, they would ban fixed-term leases. This practice allows landlords to boot tenants after their lease is up and increase the rent of units, effectively bypassing the 5% annual rent cap enacted by premier Tim Houston’s government.

Chender also said she would cut the cap in half, meaning yearly increases to rent would not be more than 2.5% of what tenants are already paying. She says she would do this immediately.

The release notes that rent increased 18% last year on average, and that the typical one-bedroom apartment costs $2,000 per month in Nova Scotia. They also said the vacancy rate is 1%. The CMHC’s 2023 rental market report shows that the vacancy rate in Halifax last year was 1%, and noted that the average two-bedroom apartment rent is $1,628—up from 11% the previous year, although other sources claim that it has only become worse in 2024.

An ACORN Canada study on the subject found that 35.7% of respondents in Nova Scotia who were on a fixed-term lease had been evicted on a fixed-term lease before. Housing experts have said it’s created a loophole that has negatively impacted renters who are looking for long-term housing—all while the provincial government says fixed-term leases exist to accommodate students and those needing short-term housing.

Critics have also derided the rent cap for being higher than the 3.5% inflation rate, and taken issue with new policies from the Houston government that see eviction timelines shortened, giving landlords more reasons to evict tenants. Neither the PC Party nor the Nova Scotia Liberals have announced any plans to adjust the rent cap or scrap fixed-term leases.

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Article by Brendyn Creamer for The Coast