TheCable

The Canadian government, on Thursday, announced it will ban foreigners from buying homes in the country for two years in a bid to address the rising cost of housing.

The development comes amid growing inflation and the rising cost of housing in the country.

The Canadian government also announced higher taxes for those who sell their homes within a year.

According to the BBC, home prices have increased by more than 20% since 2021, while rental rates surge.

During his campaign for election in 2021, Trudeau had pledged to tackle housing affordability.

The proposed ban would exempt foreign students, foreign workers or foreign citizens who are permanent residents of Canada, and those buying their primary residence.

The Canadian government also proposed providing billions of dollars to spur the construction of affordable housing to cool off the rising real-estate market, including new programmes such as tax-free savings accounts for first-time buyers.

The measures were contained in the country’s 2022 budget proposal tabled by Chrystia Freeland, the country’s finance minister on Thursday.

However, real estate experts do not think the ban will address the housing problem.