Social rents in Wales will rise by a maximum of 6.5% from April 2023 under a new settlement announced by the minister for climate change. Julie James said in a statement that the settlement figure was reached after consulting tenants and landlords on a cap for 2023-24, in the context of the inflationary pressure the sector is under and the cost of living crisis facing tenants. In Wales, approximately three-quarters of social tenants have all or part of their rents covered by benefits. When the Welsh Government announced its initial five-year settlement in December 2019, it said rents could be increased by a maximum of Consumer Price Index (CPI) +1%. Under the policy, landlords have been allowed to raise an individual tenant’s rent by CPI+1%, plus up to £2, as long as the overall average increase for their stock is no greater than CPI+1%. However, should CPI fall outside the range of 0% to 3%, the minister will determine the appropriate change to rent levels for that year only. CPI is currently at 10.1%.
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