The current rent settlement of CPI + 1% will be extended for another year

The Chartered Institute of Housing has welcomed the Welsh government’s announcement yesterday to extend the rent settlement, stating that it will offer stability and certainty for the sector.

Matt Dicks

Source: Chartered Institute of Housing

Matt Dicks, national director at CIH Cymru says that the rent settlement extension will provide the sector with stability and certainty

In a written statement yesterday, cabinet secretary for housing, local government and planning, Julie James ,announced that the Welsh government’s rent and service charge standard will be extended to the end of March 2026.

This means housing associations and councils will be able to set their own rent increases in 2025/26, subject to September’s consumer price index plus 1%, subject to CPI falling between 0% and 3%.

If CPI should fall outside the range of 0% to 3%, Welsh ministers will determine the appropriate change to rent levels to be applied for the year.

Matt Dicks, national director at CIH Cymru said: “We welcome the decision to extend the rent and service charge standard to 2026 and the ministers’ ongoing focus on ensuring that the right balance is struck between affordability of rent and ensuring that housing organisations can invest in new homes, retrofit exiting homes, and provide an excellent service to their tenants. The rent settlement is not a target, but a ceiling in which social landlords can work with to strike this balance”.

Dicks added that the decision “will provide the sector with stability and certainty, enabling housing associations and stock holding local authorities to set rents at a level that are fair and affordable for their tenants”.

He stated that the impacts of the cost-of-living crisis are still being felt by many tenants and that housing organisations are ready to work with tenants to address any financial hardships they are facing.

He concluded: “CIH Cymru will continue to collaborate with the minister and the wider sector to ensure that future rent settlement and rent policies continue to balance affordability with the goal of reaching our shared ambition of providing good, sustainable and warm homes for everyone living in social housing in Wales.”

>> See also: DLUHC extends rent settlement for social landlords until 2026

>> See also: G15 urges government to commit to a 10-year rent settlement in the spring budget

In her statement, James said: “social landlords are at the forefront of meeting the housing and support needs of some of the most vulnerable members of our communities”.

She added that “extending the rent standard by a further year provides social landlords with early notification of the parameters within which any rent increase for their tenants must be implemented”.

James also said that it provides reassurance to tenants that the government will continue to support efforts to help those experiencing financial hardship and not evict tenants into homelessness.

Earlier this month, the Department for Levelling Up, Housing and Communities confirmed that councils and housing associations in England will also be able to increase their social housing rents by September’s Consumer Price Index figure plus 1% in 2025/26.