Last year, as part of the wider commitment to end
homelessness in Wales, the Welsh Government announced a number of
steps to support people in social rented accommodation as part of
an agreement with local authorities and Registered Social
Landlords.
Today, Friday, October 27, Climate Change Minister has announced a continuation of
that support from social landlords as well as a new maximum
social rent uplift cap of 6.7% from April 2024.
The Minister said: “Last year, I made the decision to cap the
social housing rent uplift below the level of inflation to
provide additional support to our social housing tenants as they
faced pressures from the rising costs of food, energy and other
household goods.
“The Office for National Statistics reported UK inflation was
6.7% in the year to September, which means I must, once again,
intervene and determine the maximum rent uplift for next year
under the Welsh Government Rent and
Service Charge Standard 2020 - 2025.
“It is vital that we continue do all that we can to support those
who face severe financial hardship, which is why I have made the
decision to set the maximum uplift cap at the level of inflation.
“This means social landlords can charge a maximum social rent
increase of 6.7% across all of their properties.
“Today’s announcement also ensures ongoing commitments from
social landlords in Wales to support tenants struggling with the
impacts of the ongoing cost-of-living crisis, including the
continuation of the no evictions due to financial hardship policy
for tenants that engage with their landlords.”
The rent settlement for 2024-25 means that targeted support will
be provided to those experiencing financial hardship to access
support as well as investment in existing homes to keep them
safe, warm and affordable to live in.
The Minister continued: “Despite CPI falling significantly since
September 2022, the current economic climate continues to present
challenges for both social landlords and their tenants.
“A recent survey on rent setting by
the Tenant Participation Advisory Service Cymru indicated a
9% fall in the number of respondents who felt that their rent was
unaffordable.
“However, I am well aware of the impacts that the continuing
cost-of-living crisis has put on social housing tenants and that
this uplift may not feel ‘lower’ to many people across Wales.
“Landlords are not required to charge the maximum uplift amount
and I urge all social landlords to carefully consider
affordability and set rents appropriately across their housing
stocks.”
Next year will be the final year of the five-year rent policy.
We will continue to work in close collaboration with social
landlords, the wider sector and other partners to inform our
future rent policy, develop a consistent approach to assessing
affordability and continue to provide support to both social
landlords and their tenants.
Affordability is at the heart of social rent policies in Wales,
and we will continue to strengthen our approaches and work
effectively with partners to deliver on our commitments.
