Will the Minister make a statement on the Welsh Government's policy on allowing housing associations and local authorities to increase rents above inflation?
A 5 year rental agreement was agreed in December 2019 following a recommendation from the Affordable Housing Supply Review. This agreement places the needs of the tenant and affordability as a priority consideration for social landlords when setting their rents. The agreement protects tenants from exorbitant rental increases.
I recognise that there will always be tension between affordable rents for tenants and generating sufficient rental income required to maintain tenants’ homes and build the social homes of the future. That is why the Government’s rent agreement puts in place this ceiling as a maximum.
Social landlords set their own rent levels under this threshold, and will need to demonstrate to Welsh Government that affordability for tenants is taken into account - even if this means freezing or reducing rents.
I am determined to ensure Welsh social housing rents remain affordable for local people going forwards. Hence, Welsh Government will continue to publish data on market rents, local incomes and local house prices in order for social landlords to set their tenants rents appropriately.