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The province continues to consider possible changes to rent control rules, specifically an exemption that allows landlords of buildings constructed after 1991 to demand whatever rent they want.

“I think landlords have come to the reality that some change is coming and now the issue is what can they tolerate,” said an industry source, who asked not to be identified.

One policy change under consideration is a “rolling exemption” for the existing stock of apartment buildings built after 1991. New apartment buildings would have approximately 20 years of no rent control and then be subject to guidelines, said the source.

Those post-1991 buildings would also be allowed to charge more than rate of inflation for increases. Pre-1991 buildings are stuck with increases based on inflation only, about 1.5 per cent per year and the new builders would get a bonus above and beyond that percentage, said sources.

“There’s no reason we can’t have two policies (for rent increases),” said another source. “We already have that in place.”

Urbanation said the average monthly rent was $1,993 in the first quarter, about the same as the previous quarter.

Excluding the impact of new units, the company said annual rent growth was 5.5 per cent, down from 6.8 per cent in four quarter of 2016. Over the past five years, rents have grown by an average of 2.3 per cent annually.

“An improvement in condo supply growth alleviated some of the recent pressure on rents,” said Urbanation.