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Welsh government ‘to issue five-year rent settlement in July’

Welsh government ministers will announce a new five-year rent deal for social housing in July, Inside Housing understands.

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Welsh government ‘to issue five-year rent settlement in July’ #ukhousing

Sources said the Welsh government will issue the new rent settlement when responding to the Independent Review of Affordable Housing Supply.

Housing and local government minister Julie James has confirmed that the response will come before the Welsh Assembly breaks up for summer recess on 22 July.

The housing sector in Wales has been pushing for an early announcement on rents, after a surprise inflation-only settlement for 2018/19 was announced in December, just four months before it came into effect.


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The final report from the affordable housing review panel was published at the start of May.

Among the panel’s recommendations was a call for a five-year rent policy from 2020/21.

A five-year rent settlement of Consumer Price Index (CPI) plus 1% will come into effect in England from 2020, after the current period of yearly 1% cuts ends.

The review panel said there “is little justification for anything above CPI+1%” in Wales.

A Welsh government spokesperson said: “We will respond to the recommendations made by the independent affordable housing supply review panel before the summer recess (mid-July).

“In considering our response to the recommendations, the minister and officials will talk to people across the housing sector to understand their views and how best to implement changes.”

Clarissa Corbisiero, deputy chief executive and director of policy at Community Housing Cymru, said: “Following the publication of the review we called on Welsh government to move swiftly to put in place a five-year sustainable rent settlement that will provide certainty for tenants and landlords.

“We continue to believe that the best way of setting rents that are affordable is by housing associations working with tenants at a local level.

“We hope that Welsh government will support this by publishing a sustainable and long-term deal quickly.”

At-a-glance: key recommendations from the Independent Review of Affordable Housing Supply in Wales

At-a-glance: key recommendations from the Independent Review of Affordable Housing Supply in Wales
  • Councils should be required to provide regular, standardised Local Housing Market Assessments
  • New “consolidated and simplified” standards for grant-funded and Section 106 homes should be developed, concentrating on minimum space standards, including for inside and outside storage
  • All new affordable homes should be near zero carbon/Energy Performance Certificate ‘A’ standard from 2021, with all homes achieving the same standards by 2025 irrespective of tenure
  • The Welsh government should develop a strategy for further use of offsite manufacturing and modern methods of construction
  • A new five-year rent policy from 2020/21, with new flexibilities and a focus on landlords considering value for money as well as affordability
  • Councils should be able to access grant and be encouraged to partner with housing associations
  • A new arm’s-length body to act as a hub for public sector land management
  • Grants should be reformed to introduce a new “flexible, long-term, five-year affordable housing supply partnerships model”, which combines existing funding pots and tests “the contribution of private finance and alternative finance models”
  • The Welsh government should commission an independent financial review of councils and large-scale voluntary transfer housing associations receiving Dowry and Major Repairs Allowance to help them meet the Welsh Housing Quality Standard (WHQS)
  • Landlords “should be required to demonstrate an accelerated programme of decarbonisation of existing homes” in order to continue receiving the funding once WHQS is achieved
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