Rent set to rise by over 4% in Welsh county

Elgan Hearn, Local Democracy Reporter

A tenants group in Wales has warned that council rent increases next year are in danger of pushing people into poverty.

At a meeting of Powys County Council’s Liberal Democrat/Labour Cabinet on Tuesday 20 January, senior councillors are expected to agree a raft of proposals all based on a 4.3 per cent hike in fees and rents that would come into force on April 6.

This would see the average council house rent to go up from £111.16 to £115.94 per week.

The cost of occupying a gypsy/traveller plot will also go up from £125.39 to £130.78 a week.

Garage rents are also set to go up from £15.05 to £15.70 a week. This sees the annual cost go up from £191.32 this year to £199.95 for 2026/2027.

The 4.3 per cent increase is the maximum increase allowed by the Welsh Government.

The council point out that they don’t always increase fees to the maximum allowed, such as in 2023/2024.

In 2023/2024 the maximum increase allowed was 6.5 per cent, but Powys only raised it by 5.36 per cent due to “exceptional” cost of living circumstances.

‘Unaffordable’

Documents lodged with the report show that the Powys Tenants Scrutiny Panel (TSP) met in November to discuss the proposals.

The panel had four options in front of them ranging from no rent rise to increases of 2.2, 3.8 and 4.3 per cent.

Minutes from the meeting said: “The panel debated the trade-offs, noting that while a higher increase of 4.3 per cent would maintain current service levels, it could be unaffordable for many tenants.

“Multiple tenant representatives strongly opposed the 4.3 per cent increase, expressing concerns it would push more people into poverty, especially working tenants who do not receive benefits.

“Some noted that the maximum should be seen as a limit, not a target, and questioned what tangible benefits tenants would receive from such an increase.

“There was consensus that 4.3 per cent was unaffordable for many, with references to rising costs in other areas like Council Tax and utilities compounding the impact.

“Panel members suggested that services could be maintained with a lower increase and that everyone, including the council, should cut their cloth in difficult times.”

Compromise

The minutes show that a majority on the panel voted to reject the 4.3 per cent increase and voted for a compromise increase of 2.7 per cent – which is £3 a week.

Comments from the panel are included in the cabinet report explaining why they can’t support the 4.3 per cent increase and recommend a 2.7 per cent increase.

The TSP said: “We have experienced four years of above inflation rent and service charge increases and have now reached the point where families with two incomes are finding it increasingly difficult to find the money.

“Food inflation for example has risen 37 per cent in the last four years alone.

“We know times are tough, but they are tough for tenants both on benefits as well as those in work, many of whom have not had pay increases to cover these costs.”

But council chiefs will push for the maximum increase.

The report said: “A rent increase of 4.3 per cent, which is in line with the CPI (Consumer Prices Index) inflation rate for September 2025, is necessary to make sure that the Housing Service is sustainable and able to provide homes and services for both current and future tenants.

“Should rents not increase to keep pace with inflation, the Housing Service would need to consider service reductions.”