Social rents in Wales will rise by a maximum of 6.5% from April 2023 under a new settlement announced by the minister for climate change, Julie James.
This decision has been taken following consultation and in the context of the cost of living crisis. The Minister has said that the settlement will help social landlords in “protecting and enhancing the provision of good quality housing and vital tenant support service.”
This rent cap for the next financial year is part of a package of support for tenants including a series of commitments secured with social landlords, one of which is there be ‘no evictions due to financial hardship for the term of the rent settlement in 2023-2024’. The increase is below the rate of inflation we are currently experiencing and will be the maximum any landlord can charge. No landlord is required to charge this maximum and all landlords have been told to consider affordability and set rents appropriately.
This decision will be a welcome announcement by RSL’s in light of the prospect and anticipation of a lower cap, and gives hope to RP’s in England who await the much anticipated announcement on the cap to be applied. The announcement is expected imminently in England with the Government indicating in the consultation that 5% was the preferred number as striking a balance between landlord and tenant. Much has changed in the economic climate and political landscape since the consultation was published at the end of August 2022 so it remains to be seen if 5% is still the magic number for England. Watch this space!
For more information, please contact Samantha Grix.