Housing secretary Jayne Bryant has approved a ten-year rent standard for social that she said would provide ‘immediate certainty and stability for social landlords and tenants across Wales’.
The Welsh Government Rent and Service Charge Standard 2026-2036 will see social housing rents rise by Consumer Price Inflation (CPI) + 1 per cent. This is the maximum overall increase allowable in any one year where the CPI rate in September falls between 0 per cent and 3 per cent.
Where September CPI falls between 3 per cent and 5 per cent the maximum overall increase will be CPI+0.5 per cent but if September CPI exceeds 5 per cent Welsh Government ministers will determine the appropriate uplift to be applied for that year.
CPI rose to 3.8 per cent in August and the September figure will be published later this month.
In addition, individual tenants’ rents can be reduced, frozen or increased by ‘up to an additional £2.55 per week’ on condition that the overall increase in rental income is no greater than the national formula.
Service charge increases are not included in the standard on the grounds that they are governed by a range of local and property-specific factors. But will be expected to be ‘reasonable and affordable’ and landlords will be required to review them annually to ensure that they provide value for money for tenants and are affordable.
However, Welsh Government has not yet made a decision on the issue of rent convergence.
Jayne Bryant explained in a written statement: ‘Affordability remains at the heart of our social rent policy and I have committed to embedding this further by developing an affordability framework, which will bring greater clarity and consistency to rent setting practice across Wales.’
‘I have listened to respondents and acknowledge the potential for rent convergence to generate additional rental income and promote greater consistency across the sector. However, convergence is inherently complex, with 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.’
As part of the settlement, social landlords have agreed to continue their commitment to no evictions due to financial hardship and to provide targeted support to tenants experiencing financial hardship as well as to maximise the use of existing social housing stock and build on existing engagement with tenants.
The housing secretary said: ‘Our new Rent Standard is more than a technical framework — it is a reflection of our values and our vision for housing in Wales. It recognises the vital role social landlords play in supporting individuals, families, and communities across Wales, and it reaffirms our commitment to working together to ensure social housing remains affordable for current and future tenants, and is fair, sustainable, and rooted in social justice.’
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.
‘The 10-year rent settlement, with rents set at CPI+1% from 2026, alongside a further commitment to undertake further analysis on rent convergence , 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 needed to help us navigate out of our current housing and homelessness emergency.’