Jayne Bryant MS, Cabinet Secretary for Housing and Local Government
Affordability is at the heart of the Welsh Government’s social rent policy. Households across Wales are facing sustained financial pressures, and it is essential that our rent‑setting framework protects tenants while supporting the long‑term sustainability of the social housing sector. That is why, when I published the new Welsh Government Rent and Service Charge Standard 2026-2036 last autumn, I committed to developing an affordability framework that will provide a consistent, transparent and sustainable basis for rent‑setting across Wales. This work is now underway and will form a central part of our wider programme to strengthen and clarify our approach to housing affordability.
In the Written Statement I issued alongside the new Rent Standard, I acknowledged the debate around rent convergence. Stakeholders have highlighted the potential for rent convergence to generate additional income, and some have also made the case that rent convergence could lead to greater fairness for tenants. However, I am clear that rent convergence is inherently complex. There are significant implications for affordability, existing funding arrangements, and the interaction with systems such as Local Housing Allowance and welfare support. Any consideration of rent convergence must therefore begin with affordability, not growth.
That said, I committed to exploring rent convergence further and I am pleased to confirm that I have commissioned Savills to undertake this research. Savills have significant expertise and knowledge in this area, and their work will better help us understand whether
a policy of rent convergence would be appropriate for Wales. This research will explore the potential benefits, the risks, and the practical implications of any future approach, ensuring that we fully understand the complexities before reaching any conclusions.
This research, together with the new affordability framework, will provide the evidence and tools needed to inform future policy development on housing affordability. This will ensure that any decisions we take continue to safeguard tenants, support investment in high‑quality homes, and uphold our commitment to a fair and affordable social housing system.