MS, Cabinet Secretary for
Housing and Local Government: Affordability is at the heart of
the Welsh Government's social rent policy. Households across
Wales are facing sustained financial pressures, and it is
essential that our rent‑setting framework protects tenants while
supporting the long‑term sustainability of the social housing
sector. That is why, when I published the new Welsh Government Rent and
Service Charge Standard 2026-2036 last autumn, I committed to
developing an affordability framework that will provide a
consistent, transparent and sustainable basis for rent‑setting
across Wales. This work is now underway and will form a central
part of our wider programme to strengthen and clarify our
approach to housing affordability.
In the Written Statement I issued alongside the new Rent
Standard, I acknowledged the debate around rent
convergence. Stakeholders have highlighted the potential for
rent convergence to generate additional income, and some have
also made the case that rent convergence could lead to greater
fairness for tenants. However, I am clear that rent
convergence is inherently complex. There are significant
implications for affordability, existing funding arrangements,
and the interaction with systems such as Local Housing Allowance
and welfare support. Any consideration of rent convergence must
therefore begin with affordability, not growth.
That said, I committed to exploring rent convergence further and
I am pleased to confirm that I have commissioned Savills to
undertake this research. Savills have significant expertise
and knowledge in this area, and their work will better help us
understand whether
a policy of rent convergence would be appropriate for Wales. This
research will explore the potential benefits, the risks, and the
practical implications of any future approach, ensuring that we
fully understand the complexities before reaching any
conclusions.
This research, together with the new affordability framework,
will provide the evidence and tools needed to inform future
policy development on housing affordability. This will ensure
that any decisions we take continue to safeguard tenants, support
investment in high‑quality homes, and uphold our commitment to a
fair and affordable social housing system.
