A Social Housing Rent Policy was introduced in 2020/2021. This allows for a maximum rent increase of September CPI + 1%. This policy was for 5 years and will therefore expire in 2024/2025. If CPI is above 3%, the Welsh Government Minister will be required to decide about any rent increase that can be applied.
When deciding on whether to apply the increase, consideration must be given to the value for money and affordability for tenants. Any possible cost efficiencies that can be made on the Housing Revenue Budget must also be considered.
The introduction of the Renting Homes Wales Act (2016) on 1st December 2022, stipulated that 2 months’ notice must be given to contract holders (tenants) before amending any rents. Until last year, rents used to be set as a part of the February budget process, however, due to the 2 months’ notice now required a separate Cabinet decision must be made.
The cabinet report will lay out the proposal for setting rents in considering affordability, value for money and any savings identified.
Decision type: Key
Decision status: For Determination
Notice of proposed decision first published: 23/10/2023
Decision due: 14 Dec 2023 by Cabinet
Lead member: Cabinet Member for Housing & Communities
Lead director: Director of Adults Services, Housing & Communities
Scrutiny Consideration: AMBER