CIH Cymru responds to Welsh Government rent settlement announcement

Cabinet secretary for Housing, Local Government and Planning, Julie James MS, has announced the decision to extend the Welsh Government’s rent and service charge standard to the end of March 2026.

Housing associations and stock holding local authorities will be able to determine their own rent increases for tenants in 2025/26, subject to September’s consumer price index (CPI) falling between 0 and 3 per cent. These increases will be subject to the formula and guidance set out in the rent standard.

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." 

“Today’s 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." 

“We must also acknowledge that the impacts of the cost-of-living crisis are still being felt by many tenants and housing organisations are ready to work with tenants to address any financial hardships they are facing." 

“CIH Cymru will continue to collaborate with the minister and the wider sector to ensure that future rent settlement and rent polices 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.”