CIH Cymru response to Welsh government announcement on social rent settlement

The Minister for Climate Change, Julie James MS, announced today (November 16) that there will be rent settlement for social landlords in Wales of 6.5 per cent. This means that housing associations and stock-retaining local authorities will be able to raise rents by up to 6.5 per cent from April, 2023.

Responding to the announcement, CIH Cymru Director, Matt Dicks said:

“We are living in difficult times with a deep and sustained cost of living crisis having a huge impact on many of the tenants that our members support on a daily basis.

“We understand this has been a hugely difficult decision for the Minister to make in terms of balancing the needs of rent levels that are sustainable for tenants with the need to ensure that housing organisations have sufficient income levels to allow them to continue providing essential services and support to tenants; as well as being able to meet the Welsh Government’s ambitions around building more low-carbon homes at social rent and decarbonising our existing homes.

“Our members, who work in social housing, have been doing a huge amount of work with tenants and housing providers in response to the cost of living crisis and are continuing to invest in hardship funds to help those struggling the most; supporting local charities and foodbanks; and funding money management and social security advice programmes.

“We are concerned that given the current rate of inflation and its impact on supply chains, the rent settlement is in effect, a real-terms cut in the main income source for social housing organisations. In order to continue to deliver the high-level of service to tenants, as well as reach the ambitious targets it has set the sector in this Senedd term, the Welsh Government may need to allow more flexibility and the right level of funding, to enable the housing sector to meet these targets.”