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Community Housing Cymru welcomes 10-year rent settlement in Wales
Community Housing Cymru (CHC) has welcomed the Welsh government’s new 10-year rent and service charge standard which limits annual social rent increases and makes them dependent on the rate of inflation.
Community Housing Cymru welcomes 10-year rent settlement in Wales #UKhousingThe new settlement will apply from 2026 to 2036 and will limit annual rent increase to consumer price index (CPI) +1% if inflation is at 0-3%, and CPI +0.5% if inflation is between 3 and 5%.
However, the Welsh government has said this should not be regarded as an automatic uplift for social landlords.
Under the previous standard (2020-25) the CPI +0.5% for 3-5% inflation was not included.
The new standard also outlines that social landlords are expected to set service charges for their properties at a level “which is responsible and affordable”, with an annual review of value for money required.
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Landlords are required to list their service charges separately to the rent to allow for transparency with tenants. These new rules apply to social landlords with general needs and to sheltered housing.
The Welsh government hopes this framework will provide a transparent and consistent approach to rent-setting for tenants and improve investor confidence in the sector. However, it has not yet committed to rent convergence.
Jayne Bryant, housing secretary, said: “I have listened to respondents and acknowledge the potential for rent convergence to generate additional rental income and promote greater consistency across the sector.
“However, convergence is inherently complex, with significant implications for affordability. That is why we will undertake further analysis alongside our work on affordability to inform consideration of whether, when and how convergence could be pursued within the wider housing and fiscal landscape.”
Earlier this year, the CHC called for the government to agree a long-term rent framework, during a Local Government and Housing Committee meeting.
In a statement on the new rent settlement announcement, the CHC said: “We welcome the much-needed certainty provided by the Welsh government’s confirmation of a 10-year rent and service charge standard.
“This will allow social landlords to plan with confidence the much-needed investment in the new and existing homes and high-quality services tenants rely on, while ensuring rents and service charges remain affordable.
“There are a number of questions remaining on rent convergence, and look forward to these being addressed at pace through the promised programme of work outlined by the cabinet secretary.”
The standard also outlines joint initiatives between the CHC and the Welsh Local Government Association to strengthen transparency and accountability and improve learning and practice, through enhanced data sharing.
The Welsh sector’s agreement on a ten-year settlement follows a similar decision taken in England earlier this year.
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