Rent increases for social housing tenants will be capped at 6.5% from 2023, the Welsh government has announced.
Minister Julie James confirmed the cap for social rents for the next financial year along with a package of support for tenants, including no evictions for cash-strapped renters who talk to their landlords.
James 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 well below the rate of inflation. This is the maximum any landlord can charge across all of their properties.
“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. The rate is a maximum not a requirement or a target.
“We know that any increase in social rent may impact those social tenants who pay all or part of their own rent. These tenants, in particular, need to be protected from being placed into financial hardship through trying to cover the costs of keeping a roof over their heads.”
In Wales, approximately three-quarters of social tenants have all or part of their rents covered by benefits. Therefore, for many tenants any increase in rent will be covered by benefits paid by the UK government.
A joint campaign, encouraging tenants to talk to their landlord if they are experiencing financial difficulties and access support available, will be launched across Wales next year.
The Welsh Conservatives housing spokeswoman Janet Finch-Saunders said it was disappointing rent caps were being used to combat rent rises which she blamed on a “Labour-made housing crisis”.
She claimed only 6,000 houses were being built every year which was “less than half of what we need”.
“Labour must address the root of the housing crisis in Wales and not look to paper over the cracks that they themselves have caused,” she said.
From April 2023, the maximum limit which social rents can charge will be 6.5% – an increase well below the rate of inflation. This is the maximum any landlord can charge across all of their properties.
this paragraph just shows how out of touch they are!
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I trust that Council Tax will be similarly capped.
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They’ve been listening to the wrong people for far to long and those with personal agendas. You reap the harvest you sow, in Wales you never sowed, always a sticking plaster from one debacle to another. if they worked in the private sector most of them in the Senedd would be on special measures/supervision or sacked. Maybe the electrate wil open their eyes at the next election.
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so just yesterday in an EYE report it was stated that Felicity Buchan the housing minister confirmed rent controls would not be considered and here we are today where Hunt has announced that a rent cap will be introduced on social housing. Social housing today you can bet that the PRS tomorrow. Of course we know that left wing wales is applying rent controls (rent caps) to all landlords as in eye yesterday. The signs and ongoing attacks on the PRS means NO ONE should have confidence to invest in the private rental market – politicians just cannot be trusted. Unlike all the super-rich MP’s not all landlords are wealthy.
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