Rent increases in New Brunswick to be capped at 3% starting Feb 1

It's expected to be debated and passed before the legislature adjourns for Christmas.

The Holt government has introduced legislation to impose stricter limits on rent increases in New Brunswick.

The rent cap bill will limit residential rent increases to three per cent a year starting on Feb. 1, 2025.

Housing Minister David Hickey introduced the bill on Wednesday. It's expected to be debated and passed before the legislature adjourns for Christmas.

Landlords will be able to apply for increases above the three-per-cent cap, but only to a maximum of nine per cent, and only if they can show that the increases are needed because of renovations to their units. The cap will be reviewed every year and adjusted based on the inflation rate and vacancy statistics.

A landlord will be able to increase rent at a higher rate only when a new tenant moves in.