Weekly Regional Business Intelligence

Written by Kieran Delamont, Associate Editor, London Inc.

Sounding alarm on market challenges, LHBA calls on feds and province to remove tax on all new home sales


The London Home Builders’ Association (LHBA) is lobbying the provincial and federal governments to remove the sales tax for all new home buyers. “While the removal of HST for first-time buyers is a positive step, those purchasers only make up approximately five per cent or less of the market,” the association wrote in a letter released this week, asserting that cutting all sales tax on home sales “would have a tremendous impact restoring home affordability, helping revive the housing market and keeping thousands employed.” Ottawa introduced Bill C-4 (it has not passed into law yet) in its latest budget, which includes a provision to eliminate the federal portion of the sales tax on a new home worth up to $1 million purchased by a qualifying first-time buyer. The province then pledged to follow suit, waving the provincial portion of the sales tax.

 

The upshot: Just about the whole real estate sector, from construction to sales, is staring down a grim forecast for 2026: continued low sales, an end to the current boom in purpose-built rental construction and very little demand for new builds — put together, it’s not pretty. “We’re still going to see building happen to some extent next year, but if nothing changes we could see some severe consequences,” Jared Zaifman, CEO of the LHBA, told The London Free Press. There are a decent number of very large projects that should be starting or ongoing next year, although delays to major projects have been an issue as well, and Zaifman said they are “very concerned for what 2026 may bring.” 


Read more: London Free Press | LHBA

Willies Café pulls the plug on OEV, cites unmanageable environment


The owner of Willie’s Café says he is moving the business closer to downtown, having struggled with what he told The London Free Press was becoming an “unmanageable” environment in OEV. “There are moments where I don’t feel safe coming to work,” Ian Kennard (pictured) said. “When I looked at how I was doing financially, I realized that if I stayed here I would go bankrupt.” The café will remain open at its location at 630 Dundas Street until December 19 and is targetting a mid-January opening in new space at One London Place at 255 Queens Avenue. “I’m excited about being a lot busier, being in a much nicer neighbourhood,” Kennard said. “I’m looking forward to long days.”

 

The upshot: Kennard isn’t reserved about his reasons for leaving, saying he has engaged police and city politicians on numerous occasions, but other than sympathetic pretexts, nothing much has changed. “[Politicians tell me] we’re doing what we can and if you can hang on, things will get better,’” he said. “But I can’t hang on. I cannot hang on.” Local councillor Susan Stevenson told the Free Press, “I think it’s incredibly sad [they’re moving] and I’ve advocated for this area and been unsuccessful.” MPP Terence Kernaghan said “they’ll be missed. It’s such a shame.” Importantly, Kennard, a stalwart of London’s dining scene, is energized about the move and the future for his business. “We’re on the main floor of a 25-storey office tower. The location is ideal for us,” Kennard said in a video. “The space is spectacular. The potential and the opportunity is just huge.”


Read more: London Free Press | Willie's Café

Bus service is having a moment in London, ranks as top-three destination for 2026


London has landed itself in the top three destinations for bus travellers, according to new data from Busbud, a travel website specializing in intercity bus tickets. Is the Forest City becoming a hot destination for staycationers? Eh, not so much, but Busbud suggests London is serving as a very active connection hub. “The early surge in bookings for 2026 toward London and Kingston validates the essential nature of our network,” said LP Maurice, CEO of Busbud. “The bus is not just a holiday option, but is the backbone of mobility for students, families and commuters across the country. The Canadian traveler is demonstrating a clear need for reliable connection, whether it is crossing the border to U.S. hubs like New York and Seattle, or securing travel between Ontario’s key cities.”

 

The upshot: When Greyhound ceased Canadian operations mid-pandemic in 2021 and shuttered its London terminal at 101 York Street, there was considerable concern for the future of bus services in the city. But in the relatively short time since, a number of operators have more than picked up the slack, including large operators like FlixBus and ONEXBUS, and local player Intercity Bus Inc. And what’s particularly interesting about all this activity is how the market has switched from terminal service to simply grabbing and depositing folks around town at designated pick-up and drop-off spots. And while Intercity Bus does utilize the former bus terminal to a small extent, one wonders if it is time for the city to revisit a dedicated terminal. “What kind of experience is it for a customer who sits out in inclement weather on a street corner, or who has to wait in the cold and doesn’t have a safe environment from which to travel to and from?” asked C&J Bus Lines owner Jim Jalbert, speaking to SmartCities Dive. “The flexibility of bus — both in the urbanized and non-urbanized areas — is critical.” 


Read more: Busbud

City proposal to pass on weeping tile charge to homebuyers draws ire of realtors, politicos


Realtors and a few city politicians aren’t weeping yet, but they’re certainly not happy about a staff proposal to tack on a bill to replace outdated weeping tiles on older homes. Staff from the city’s wastewater management division want to see weeping tiles (perforated pipes that run along the exterior of a home to divert groundwater away from the foundation) disconnected from the municipal sewer system. Their suggestion this week was to mandate that disconnection whenever an older home with weeping tiles is sold — with the tab being shouldered by the homebuyer. That plan drew criticism from realtors, who point out that it amounts to an extra bill on the sale of older homes, as well as politicians like Councillor Corrine Rahmnan, who called it “a new land transfer tax for London,” and said she wanted to “see all of the alternative strategies outside of the one recommended.” If approved, the mandate would apply to 50,000 properties in the city, with the price per replacement ranging from between $5,000 and $10,000. “It would definitely chill sales,” said Dale Marsh, chair of the London and St. Thomas Association of Realtors.

 

The upshot: Just how much of an environmental or infrastructure problem is posed by existing weeping tile systems is a question for engineers and scientists. But the idea to mandate their disconnecting seems to stem from a desire to replace the city’s existing opt-in weeping tile replacement program — a subsidy to replace them with sump pumps — which isn’t working all that well, with staff saying only 70 to 90 are replaced each year. Realtors certainly have a point here: adding up to $10,000 to the cost of purchasing home isn’t going to help anyone in the housing market. It would also hit different areas of the city more substantially than others. The response thus far is lukewarm. “Much, if not all of my ward would probably be impacted by it,” said Councillor Hadleigh McAlister. “I’m still willing to look at the options, I’m not really willing to just accept it outright at the moment.” 


Read more: CTV News London

Fanshawe radio students seek compensation for shuttered station


Students with Fanshawe’s broadcast journalism program say they “expect compensation” after Fanshawe brass killed their radio station (CIXX-FM, known as 106.9 The X), saying the school had promised them experience with a CRTC-licensed radio station. “If we’re paying full tuition, we expect the full educational experiences,” said Julia Seitz, who has brought forward a petition to the college asking it to either compensate students or conduct a “tuition reassessment.” The school says such a move would be premature, saying that the radio station isn’t quite dead yet — and they are trying to find a community partner to take over the license. “We are currently speaking with interested parties in the community who did respond to the college’s call for folks who might be interested in undergoing the transfer process of the broadcasting license,” Mary Harrison, dean of the arts faculty, told CTV News London. “The college is committed both to responding to students’ questions and to ensuring the continued and ongoing quality of their learning experiences as they wrap up their program.”

 

The upshot: Hard to really disagree that the students should get some kind of compensation here — after all, they are paying tuition fees that in part are supposed to provide experience at an operational radio station. Students say they aren’t necessarily looking for cash, but rather for the school to “give us an opportunity to have the same experience they promised us” (which could be code for “try a bit harder to find a new suitor”). They’re not alone in their experience: this week, the University of Ottawa also announced that it was planning to axe its campus radio station, CHUO-FM, at the end of the week, citing the high cost of rent and the end of a student subsidy to keep the station open. 


Read more: CTV News London | CBC News London

London Police warn businesses of uptick in counterfeit bills


Keeping a close eye on your money is never bad advice, but it might be especially important for downtown businesses with the holiday season in full swing — London Police say there’s been an uptick in the circulation of counterfeit cash in town recently. Magpie Collected Creations owner Jenn Jack told CBC News London that a fake $50 bill was recently passed in their shop. “We’re all small businesses and it hurts your bottom line,” she said. “You don’t want to pass on a fake bill to a customer either, right?” Police recommend business owners take a moment to refresh themselves and staff on how to spot fakes. “We urge everyone to carefully inspect banknotes before accepting them, as counterfeit bills often lack essential security features,” the LPS said in a statement. “If you encounter a suspicious banknote, refuse it and request another, ensuring you inspect it as well.”

 

The upshot: It might not be something you think about all that often, especially after Canada switched to the plastic-y bills in the mid-2010s, which drastically cut the economic impact of counterfeiting. But it does appear to be on the rise again. Earlier this year, police in Winnipeg seized over $12,000 in counterfeit cash in the first quarter of the year, and last month police in Windsor issued a similar warning that counterfeit reports had increased in their community. According to the Bank of Canada and the RCMP, counterfeiting has gradually been on the rise since 2022. So, if you’re a business owner, do you get any recourse if you catch a fake bill in your end-of-day counts? Not really. In Canada, it’s policy not to reimburse businesses who end up with fakes. “The Bank, like all other central banks in the world, has concluded that reimbursement would act as an incentive that would inevitably lead to increased counterfeiting activity.” 


Read more: CBC News London

Dispatch: December 12, 2025


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