CHC Statement: Welsh Government extends Rent and Service Charge Standard

Welsh Government has announced that it will extend its Rent and Service Charge Standard to the end of March 2026.

This means, subject to September’s consumer price inflation (CPI) figure falling between 0% and 3%, social landlords in Wales will be able to decide their own rent increases for their tenants for 2025/26, in line with the formula and guidance set out in the rent standard.

Responding, Rhea Stevens, head of policy and external affairs, Community Housing Cymru, said:

“Setting rent is one of the most important decisions not-for-profit housing associations make, and they don’t take it lightly. When setting rent, housing associations carefully balance what is affordable for individual tenants with investing in the high-quality homes and services communities need.

“Today’s decision to extend the Welsh Government’s Rent and Service Charge Standard provides the Welsh social housing sector with much-needed certainty and stability, and allows housing associations to continue setting rents that are fair and affordable for the people who live in their homes.

“The permitted rent settlement is a ceiling, not a target, and housing associations will now set rents locally by engaging with tenants and using tools to understand affordability.

“If you are a housing association tenant and are struggling with any financial issues, please contact your landlord as soon as possible.”