Welsh government extends rent settlement by an extra year

“It also provides tenants with the reassurance that efforts to support those experiencing severe financial hardship and not evicting tenants into homelessness where they engage with their landlords, will continue going forward.”

For the past two years, Ms James has intervened to cap rents due to the high level of inflation. 

Rents were capped at 6.7 per cent in 2024-25, which was the level of inflation in the year to September 2023, and 6.5 per cent in 2023-24, below the 41-year high inflation figure of 11.1 per cent in the year to October 2022.

Ms James also said the Welsh government has set up a steering group to review all aspects of the rent standard and develop a future social rent policy. 

She said: “Working in close collaboration with the wider social housing sector, we have commenced our work programme to review all aspects of the rent standard and develop a future social rent policy which is fit for purpose, aligns with our legislative frameworks and works to deliver our vision for housing in Wales.”

Matt Dicks, national director at Chartered Institute of Housing Cymru, welcomed the extension. 

“[The] decision will provide the sector with stability and certainty, enabling housing associations and stock holding local authorities to set rents at a level that are fair and affordable for their tenants,” he said. 

He added: “We must also acknowledge that the impacts of the cost of living crisis are still being felt by many tenants, and housing organisations are ready to work with tenants to address any financial hardships they are facing.”