ao link
Twitter
Facebook
Linked In
Twitter
Facebook
Linked In

You are viewing 1 of your 1 free articles

Welsh government announces new five-year rent settlement

Social rents in Wales can be increased by a maximum of Consumer Price Index (CPI) +1% for the next five years, under a new rent policy announced by the government yesterday.

Linked InTwitterFacebookeCard
The Welsh Senedd (picture: Getty)
The Welsh Senedd (picture: Getty)
Sharelines

“We are pleased that the minister has today responded to the call from housing associations and set out a long-term and sustainable rent settlement,” says @stuart_chc #ukhousing

“We would like to see a stronger commitment from all social landlords to ensure tenants’ views are reflected in rent-setting decisions,” says @TPASCymru #ukhousing

Under the policy, landlords will be allowed to raise an individual tenant’s rent by CPI+1%, plus up to £2, as long as the overall average increase for their stock is no greater than CPI+1%.

However, should CPI fall outside the range of 0% to 3%, the housing minister will determine the appropriate change to rent levels for that year only.

All social landlords will be required to prepare an annual assessment of affordability and cost efficiencies, and demonstrate that their homes and services represent value for money as part of their decision about rent increases.

The new settlement comes five months after the Welsh government accepted all but one of the recommendations from the Independent Review of Affordable Housing Supply for the country, which included the introduction of a five-year rent policy.


READ MORE

All new homes in Wales to be heated and powered through clean energy sources from 2025All new homes in Wales to be heated and powered through clean energy sources from 2025
Combustible cladding to be banned on high-rise buildings from next month, Welsh government confirmsCombustible cladding to be banned on high-rise buildings from next month, Welsh government confirms
Housing bodies in Scotland, Wales and Northern Ireland set out their election demandsHousing bodies in Scotland, Wales and Northern Ireland set out their election demands
Welsh Budget: extra £133m given to social housing sectorWelsh Budget: extra £133m given to social housing sector

The review also recommended a reform of the grant system in Wales. Further announcements on this are expected in the new year.

Ms James said: “It’s important to balance the need for tenants to be able to afford their rent, and ensuring social landlords have the rental income certainty they need to build more social housing.

“Together with Welsh social landlords, we have ambitious plans to build much more social housing in Wales.

“This rent deal balances that ambition against the need to make sure ordinary people can afford to pay their rent.”

Stuart Ropke, chief executive of Community Housing Cymru, said: “We are pleased that the minister has today responded to the call from housing associations and set out a long-term and sustainable rent settlement.

“This certainty will allow housing associations in Wales to work with tenants to set rents that are genuinely affordable and ensure housing associations can continue to build and invest in the high-quality homes Wales so desperately needs.”

Matt Dicks, director of the Chartered Institute of Housing Cymru, said: “We welcome the Welsh government’s commitment to implementing the recommendations of the affordable housing supply review by introducing a five-year rent settlement which provides welcome longer-term certainty to social housing providers as they strive to deliver the social housing Wales sorely needs in addressing the housing crisis.

“The greater certainty with this settlement must now be accompanied by the same certainty regarding social housing grant levels and a long-term outlook on the support available for organisations in improving the quality of existing homes and achieving higher-quality standards for homes in the future.”

A representative from Tpas Cymru said: “We welcome the minister’s statement on the rent policy settlement and recognise that a five-year rent period will provide some greater certainty to the sector and, to some extent, tenants.

“If tenants are to be charged at a rate higher than current CPI levels, then tenants must also be afforded a much stronger voice in the decision-making process to determine what value for money they can expect when paying these higher rates.”