Siân Gwenllian MS, Cabinet Minister for Local Government, Housing
& Planning: I am today confirming that the social rent uplift
for next financial year will be 4%. This is in line with
the Welsh Government Rent and
Service Charge Standard 2026-2036 and the parameters set
therein following the Office for National Statistics (ONS)
publication of the September Consumer Prices Index (CPI)
inflation rate of 3.5%.
I am content that this cap keeps affordability for tenants at the
centre of our social rent policy whilst providing stability and
certainty for social landlords to deliver on our Programme for
Government commitments.
A safe, secure and good-quality home is fundamental to people's
health, education, sense of belonging and overall wellbeing. To
achieve this, we must work collectively to invest in social
housing to deliver 20,000 additional social homes, tackle
homelessness and improve the quality, energy efficiency and
sustainability of existing homes.
Meeting current and future housing need requires social rent
policy to balance tenant affordability with the financial
sustainability of social landlords. Predictable income enables
landlords to maintain homes, provide essential services and
invest in new and existing stock. Affordable rents, meanwhile,
help sustain tenancies, support household wellbeing and
stability, and give tenants greater certainty when budgeting.
I recognise that we continue to operate amid considerable
economic volatility and uncertainty. High inflation,
cost-of-living pressures and constrained public finances
underscore the need to keep affordability central to rent-setting
decisions. In this context I would stress that this is the
maximum permitted annual increase, it is not an automatic uplift
for social landlords to apply.
That is why, I will also be publishing a report setting out the
findings from the Rent and
Service charge Monitoring Returns submitted by social
landlords. Its publication will support transparency and
accountability across the sector and provide tenants, social
landlords and wider stakeholders with a clear account of how the
Standard is being implemented across Wales.
Affordability remains at the heart of the Rent Standard.
Alongside it, the Welsh Government will continue developing an
affordability framework to promote a consistent, transparent and
sustainable approach to rent-setting across Wales.
Together, these measures will help keep rents affordable,
strengthen the long-term resilience of the social housing sector
and support delivery of the homes Wales needs.
