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Welsh housing sector ‘disappointed’ with government’s rent policy delay
The announcement of a highly anticipated five-year rent policy in Wales has been delayed, with any decision now not expected until at least September.
Welsh housing sector figures have voiced their disappointment at the delay, saying that a swift decision is needed to provide greater clarity for housing associations and allow them to plan for the future.
The five-year rent settlement, which will see the government decide on social rent levels in Wales between 2020/21 and 2025/26, was expected to be published by mid-July but this date has now been missed, with a publication unlikely to be made until after the summer recess.
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.
In May, a Welsh government-commissioned review of affordable housing supply recommended that ministers should introduce a five-year social housing rents policy from 2020/21.
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Sources told Inside Housing at the time that the new rent settlement would be issued as part of Welsh housing minister Julie James’ response to the affordable housing review.
When asked by Inside Housing when the settlement would be made public, a Welsh government spokesperson was unable to give a date. They added: “The housing minister has considered a number of independent reports she has received relating to the social housing rent policy and will be making a decision on how to proceed shortly.”
Commenting on the delay, Matthew Dicks, director at the Chartered Institute of Housing Cymru, told Inside Housing: “The recent statement by the minister, in which she said she would implement all but one of the review’s recommendations, including a five-year rent policy, was therefore a move in the right direction in our view.
“It is therefore disappointing that the government has been unable to provide that certainty during the original timeframe it set itself of announcing the new rent policy before the summer recess, particularly given the surprise inflation-only settlement for 2018/19 announced in December.
“The lack of a longer-term settlement hampers the ability of organisations to plan for the longer term and provide further certainty to lenders over revenue income streams.”
Clarissa Corbisiero, director of policy and deputy chief executive at Community Housing Cymru, said that the long-term rent settlement was important and the sector now needed certainty over the settlement as a priority.
She said: “Affordability is central to this discussion and housing associations have already begun their work to develop an approach to setting affordable rents at a local level. We will continue to work closely with Welsh government, local authorities and other stakeholders to ensure we deliver more homes which are genuinely affordable and fit for the future.”
