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Canada has banned foreigners from buying homes for two years

Foreign buyers - particularly those from mainland China - have long been blamed for driving up home prices in Vancouver and Toronto, Canada’s two most expensive housing markets.

The average home price in Canada soared to a record $816,720 (£517,000) in February - nine times the typical household income. The cost of owning a home in relation to median incomes is now at a 31-year-high, according to calculations from the Royal Bank of Canada.

The new ban on foreign ownership of real estate is aimed at “curbing unfair practices that drive up the price of housing, in order to level the playing field for young and middle-class Canadians,” according to a statement from the Canadian government.

Some exceptions will be made for permanent residents and foreign students. The government will also impose higher taxes on people who sell their home within a year of buying it to stop the popular ‘flipping’ of new build homes.

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