It is hard to see this as anything but political posturing for a government that will be soon be going to the polls. Consider the following:
– interest rates are increasing (partly as a result of rising inflation);
– electricity costs are increasing in Ontario;
– the HST will increase the operating costs in apartments and condominiums;
– Landlords are unable to pass the higher HST induced costs to the tenants.
It would appear that this is an an outright declaration of war by the Ontario Government of Dalton McGuinty on Ontario’s landlords. It’s just a question of where the votes are. There are more tenants than landlords.
“Ontario’s rent increase guideline for 2011 will be 0.7 per cent.
The provincial government says it’s the lowest guideline in the 35-year history of Ontario rent regulation.
The guideline is the maximum amount a landlord can increase the rent of most sitting tenants without seeking approval of the Landlord and Tenant Board.
The 2011 guideline applies to rent increases that occur between January 1 and December 31, 2011.
The calculation is based on the Ontario Consumer Price Index.”