The Welsh Government has responsibility for regulating Housing Association in Wales and has recently agreed a 10-year rent settlement with all registered social landlords (RSLs) until 2036.This sets the maximum overall rent increase allowable in any one year and depends on the CPI in the September of each year. The consumer price index  (CPI)  is a statistical measure of the average change over time in prices paid for consumer goods and services.
If CPI falls between 0% and 3% the maximum overall increase allowable is CPI+1%.
If CPI falls between 3% and 5% the maximum overall increase allowable is CPI+0.5%.
Should CPI in September exceed 5%, the responsibility rests with the Welsh Ministers to determine the appropriate uplift to be applied for that year
The September 2025 CPI was 3.8%, within the range of 3% to 5%, so the maximum rents can be uplifted in 2026/27 is 4.3%.
As part of the annual decision on the level of rent uplift/reduction to be applied, social landlords are required to assess cost efficiencies, value for money, and affordability for tenants.
Affordability
Social landlords are expected to set a rent and service charge policy which remains affordable for current and future contract holders. There is no universal measure of affordability and no standard process adopted by the Welsh Housing sector. The most common definition of affordability adopted is the Joseph Roundtree Foundation (JRF) Living Rent Model which is widely used as a methodology across the sector to assess affordability. Our modelling is done using this approach.
Tenant Consultation, Engagement and Feedback
We work closely with the Tenant Scrutiny Team (TST) to shape and improve services. Every year before we make our recommendation to Board we meet with members of TST to go through the results of an online Affordability Survey that we send out in October of each year. We received 334 responses this year, 220 Newydd and 114 Cadwyn (in 2025/26: 428 responses were received; 201 Newydd and 227 Cadwyn).
We compared the results of the survey with last year’s results, and they are detailed in the table below:
We also consider the feedback we get on rent and service charge affordability through our quarterly tenant satisfaction surveys that a market research company called Acuity conduct for us.  In 2024/25 84% of Newydd tenants considered their rent to be value for money and 63% of tenants considered their service charge to be value for money. Historically, Cadwyn currently carried out their tenant satisfaction surveys every 2 years ,but we have changed this and now have two quarters of recent data that average out to 83% satisfaction with rent and 58% satisfaction with service charges.
Value for Money
Value for money of services charges was discussed with the TST last year who did a Review of service charges and have reported back to our Board with their recommendations. Details of the Review were included in a previous newsletter. Some of the recommendation include improving communication and information about service charges and providing more opportunities for involvement of tenants in the procurement and specification process of services such as grounds maintenance and cleaning.
Efficiencies
Over the last six months we have reviewed how we work and where we can operate more efficiently. The aim has been to free up resources so we can increase the level of investment in our homes and estates over the coming years, strengthening the quality and sustainability of the services we provide.
Benchmarking.
We compare our rents every year with those charged by with other Housing Associations in the Local Authority areas in which we work.
The role of the Board
Once we have collated all of the above information, we present a recommendation to the Cadarn Group Board. Board members carefully consider the recommendation and decide the level of increase that is to be applied. The Board have decided to apply a 4.3% increase this year. This compares with increases of 2.7 % in 2025/26 when CPI was 1.7%, 6.7% in 2024/25 when CPI was 6.7% and 6.5% in 2023/24 when CPI was 10.1%
Impact
In summary the average rent increase per week is for Cadwyn £5.26 per week and for Newydd £5.38 per week.
Struggling to pay your rent? Help is available
Over 70 % of our tenants are in receipt of Housing Benefit or Universal Credit to cover some or all of your Housing costs. We also have significant number of tenants who are working and are self-payers. If you are struggling to pay your rent, please do contact us without delay. We employ a team of Financial Inclusion Officers who are here to help you. The contact details are below:
Cadwyn
For Cadwyn we have a self- referral form on our website and it also provides the advisor details.
