Rents will be set at CPI plus 1%
The CIH Cymru has welcomed the announcement of a new 10-year rent standard for the Welsh social housing sector.
Last week, the devolved government’s cabinet secretary for local government, Jane Bryant announced the new standard, which will apply from 2026.
The government said the settlement, which sets rents at CPI+1% and commits it to undertake further analysis on rent convergence, reflected its “commitment to ensuring that social housing remains affordable, high-quality, and responsive to the needs of communities”.
It said that convergence was “inherently complex” and had “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,” it said.
Commenting on the announcement, Matt Dicks, national director of CIH Cymru, said: “Affordability, for both current and future tenants in social housing settings, should rightly be at placed at the heart of rent setting in Wales, and CIH Cymru particularly welcomes the cabinet secretary’s commitment to developing an affordability framework, which will bring greater clarity and consistency to rent setting practices across Wales.”
He said that the settlement “should significantly strengthen the financial capacity of social landlords in Wales to support the development of new homes at social rent at the pace and scale” to address the housing emergency.
>> Read more: Rent convergence and decent homes: getting the balance right
“The 10-year settlement will improve confidence and provide the necessary stability for the sector and for investors, allowing for fully effective business planning,” Dicks added.
“CIH Cymru, on behalf of its more than 800 members in Wales, is committed to working closely with the Welsh government as it further develops an affordability framework and reviews rent convergence.”
It follows the Westminster government’s decision to implement a similar 10-year rent settlement and convergence consultation earlier this year.
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