Many residents cited high rents compared to income, rising living costs and poor value for money as factors affecting social housing affordability
Only 42% of social housing residents in Wales consider their rent to be affordable, according to new research by tenant engagement body TPAS Cymru.
This figure is down from 62% last year and 78% in 2023.
TPAS Cymru surveyed more than 550 tenants as part of its ‘Tenant Pulse’ series and found that satisfaction with rent affordability was lowest amongst younger tenants, those whose incomes depend on their salary, and specific underrepresented groups.
Many tenants reported struggling with affordability due to feeling that their rent is too high when compared to their income, rising living costs, poor value for money, a lack of clarity around what service charges cover, and changing household circumstances such as different family sizes and experiences of the benefits system.
David Wilton, chief executive at TPAS Cymru, said: “With a new rent standard on the horizon, this Tenant Pulse provided an opportunity for TPAS Cymru to ask questions about what the future of policy could look like. When it comes to rent models, CPI and ‘warm rents’, this report shows that tenants still are not convinced. What tenants want is fairness. They want a system that reflects real life, and not just formulas.
“This report isn’t just data. It’s a call to action. It will be shared with the Welsh Government, the Cabinet Secretary, landlords, tenants and stakeholders. TPAS Cymru continues to fight for tenant-led solutions. We’ll keep pushing for a housing sector that is transparent, fair and sustainable for all.”
TPAS has recommended that landlords and policymakers should prioritise measures to keep rents manageable for all tenants, including younger tenants and those on working incomes.
This could mean the creation of a clear affordability framework, which considers household income, benefits and the cost of living when setting rents.
TPAS also called for a review of rent increase policies. With 55% of tenants preferring annual rent rises to stay below CPI +1%, rent setting models should balance the needs of tenants regarding affordability and landlord requirements to maintain homes and services.
It is also recommended that landlords and the Welsh government continue to explore strategies that provide security, transparency and fairness as residents reported valuing protections such as the ministerial cap and long-term planning.
As well as affordability, the report gauged tenant perspectives on service charges, communication, and potential rent adaptations.
The findings showed that tenants prioritise affordability over landlord reinvestment, with 71% opposing paying higher rents for energy-efficient homes and half rejecting the warm rents model.
>>See also: Nation of collaboration: Spotlight on the Welsh social housing sector
On service charges, 46% of tenants considered their service charges affordable, 29% did not, with 24% unsure. Housing association customers, those aged 31-45 and those living in mid/west Wales were the most likely to find service charges unmanageable.
Most (56%) residents reported that they do not know how their rent is spent but want to, while younger tenants (under 30) are less engaged in communications.
The report also highlighted that the quality of landlords’ communications with tenants varies regionally, with those is mid/west and south west Wales being the least likely to receive communications on rent.
TPAS recommended improving landlord communications with customers by providing greater overall clarity, particularly focusing on neglected regions and engaging all ages.
Of the survey’s respondents, 30% were local authority tenants and 66% were housing association residents.
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