BC United proposes 'rent-to-own' program for first-time homebuyers

B.C. Liberal Party Leader Kevin Falcon during a press conference at legislature in Victoria, Tuesday, Feb. 22, 2022. THE CANADIAN PRESS/Chad Hipolito

Cutting taxes, leasing public land and establishing a "rent-to-own" program are how a BC United government would tackle the province's housing crisis, leader Kevin Falcon said Thursday.

Falcon unveiled the party's plans days after Premier David Eby detailed the NDP's BC Builds initiative aimed at delivering thousands of middle-income rental units across the province. 

"If you want more affordable housing, you have to make it less expensive," Falcon told reporters at a news conference.

"You are not going to get there when you try to have government build the housing, or government be the developer, or have government come up with these complex programs that nobody can figure out."

The Opposition leader then shared his proposal for a rent-to-own program that would allow some first-time buyers to spend their first three years after a home purchase paying the equivalent of market rent – which would then be applied toward their down payment.

"For example, the typical one-bedroom rent for a couple in Vancouver is $3,000 a month, so they will live in this unit for three years paying $3,000 a month," Falcon said. "Every penny of that goes towards their down payment."

Only some units would be eligible under the plan. BC United said it would require developers to set aside "up to 15 per cent" of units in "participating projects" for the rent-to-own program.

Falcon also proposed exempting new residential construction projects from provincial sales tax, and exempting first-time buyers from B.C.'s property transfer tax when purchasing a home valued up to $1 million.

"It is crazy that we are saying to people trying to buy their first home that we are going to penalize you with up to $18,000 in taxes," he said.

The last plank of BC United's housing plan would see the province lease publicly owned land to "non-profit and market homebuilders" for 99 years, at almost no cost – just $1 per year.

Builders would be required to construct below-market rentals on the land, Falcon said.

Last fall, Eby's government passed a raft of measures aimed at improving affordability in the province, and which the NDP hopes will result in the creation of nearly 300,000 net new housing units over 10 years.

Those measures include curbing short-term rentals, such as Airbnbs, and forcing B.C. municipalities to allow more housing density, particularly near transit hubs.