Welsh Government announces 6.7% cap on rent rises for social housing landlords
Social housing landlords in Wales will be subject to a 6.7% cap on rent rises next year. The Welsh government confirmed this today.
Last year, to further its commitment to end homelessness in Wales, the Welsh Government introduced measures to aid people in social rented homes.
This move was in conjunction with local authorities and Registered Social Landlords.
Today Climate Change Minister Julie James announced the continuation of this support from social landlords.
Additionally, there will be a maximum social rent uplift cap of 6.7% starting from April 2024.
The Minister stated: “Last year, I chose to cap the social housing rent uplift below inflation levels. This was to help our social housing tenants facing pressures due to rising costs of food, energy, and other essentials.
“The Office for National Statistics highlighted that UK inflation reached 6.7% this year up to September. This demands my intervention to set the rent uplift for the coming year as per the Welsh Government Rent and Service Charge Standard 2020 – 2025.
“It’s crucial that we persistently support those in severe financial difficulty. This is why I’ve decided to align the maximum uplift cap with the inflation rate.
“This decision caps the social rent increase at 6.7% across all properties.
“The announcement today reaffirms the commitment of social landlords in Wales. They will assist tenants affected by the current cost-of-living crisis. This includes maintaining the ‘no evictions due to financial hardship’ stance for cooperative tenants.”
The 2024-25 rent agreement ensures targeted help for those in financial difficulty.
There will also be investments in current homes to ensure they are safe, warm, and affordable,
The Minister added: “Despite the Consumer Price Index (CPI) dropping since September 2022, the economic scenario remains challenging for social landlords and their tenants.
“A recent survey by the Tenant Participation Advisory Service Cymru showed a 9% decrease in participants finding their rent unaffordable.
“However, I understand the strain the ongoing cost-of-living crisis has placed on social housing tenants. Many in Wales might not view this uplift as a relief.
“Landlords aren’t obligated to apply the maximum uplift. I encourage all social landlords to think of affordability when setting rents across their properties.”
The Welsh government has said 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.”
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