Social rent cap confirmed for people in Wales

Welsh Climate Change Minister confirmed yesterday the cap for social rents for the next financial year, along with a package support plan for tenants.

Julie James, Welsh Climate Change Minister, has recently outlined a series of commitments she has secured with social landlords to help people as costs continue to soar.

According to the Welsh government, social rents in the country will be capped at 6.5% from April 2023 and an evictions ban will be implemented. 

Ms James has said, ‘I have been clear that no social tenant will experience any change in their rent until April 2023, but I do need to set rents for the next financial year now to give the sector time to plan.

‘From April 2023, the maximum limit which social rents can charge will be 6.5% – an increase below the rate of inflation.

‘No landlord is required to charge the maximum and I know all landlords will carefully consider affordability and set rents as appropriate across their housing stock.

‘Within the overall settlement landlords may freeze, lower or raise individual rents based on a number of local factors of which affordability is a key consideration.’

As well as helping Welsh residents with the rising cost of inflation, Ms James also hopes that freezing rents will help landlords assess affordability across the housing sector. 

In Wales, three-quarters of social tenants have all or part of their rents covered by benefits, meaning any increase in rent will be covered by benefits paid by the UK government.

Next year, a joint campaign will be launched across Wales encouraging tenants to talk to their landlords if they are facing financial difficulties and access support will be available.   

Photo by Ethan Wilkinson