CIH Cymru responds to Welsh Government rent settlement announcement

The Minister for Climate Change, Julie James MS, announced today (October 27) that there will be rent settlement for social landlords in Wales of 6.7 per cent. This means that housing associations and stock-retaining local authorities will be able to raise rents by up to 6.7 per cent from April, 2024.

Matthew Dicks, national director at CIH Cymru said:

“Setting rent for the social housing sector in Wales is one of the most difficult decisions that the minister has to make every year, because it is important that the right balance is struck between affordability of rent and ensuring that housing organisations have sufficient income to deliver the best services they can to the tenants they serve.

“The rent settlement is not a target for every tenant, but a ceiling in which social landlords can work with their tenants to strike that balance. In making her decision, the minister has recognised that housing organisations have delivered on the commitments it made as part of last year’s rent settlement to support tenants experiencing severe financial hardship due the cost-of-living crisis.

“Importantly, the minister has also recognised that three-quarters of social tenants in Wales will have all, or part, of their rent paid through benefit payments from the UK Government. This rent settlement means that much-needed money will flow from the Treasury, directly to housing organisations to build on the work they are already undertaking to support some of the poorest within our communities in Wales through the cost-of-living crunch, including the remaining 25 per cent of social housing tenants who have to find all, or part, of their rent themselves.

“Housing organisations are ready to work with tenants to address any financial hardships they are facing as a result of the current economic climate, and working with the Minister, CIH Cymru believes we have reached a rent settlement that balances affordability with the goal of reaching our shared ambition of providing good, sustainable and warm homes for everyone living in social housing in Wales.”