Rents for council housing in a south Wales county borough could rise by more than 4% next year under proposals put forward by the Vale of Glamorgan Council.
The council is proposing an average rent increase of 4.3%, the maximum uplift permitted under the Welsh Government’s social rent settlement for 2026–27. It says the proposal reflects ongoing financial pressures, including high interest rates and inflation, while ensuring it can continue to invest in housing services.
A report ahead of a cabinet meeting on Thursday 8 January says the increase is needed to maintain existing homes, build new council housing and meet long-term environmental commitments. The council aims to decarbonise its housing stock by 2040 and comply with the new Welsh Housing Quality Standard (WHQS).
Analysis in the report shows that around £70m will need to be invested in existing council homes over the next 10 to 15 years to meet WHQS requirements, with a further £95m needed over the next 30 years to support decarbonisation. The council says this level of capital investment is only possible if sufficient income is generated through rents.
The report also notes that rental income is used to fund new council housing. Demand for social housing remains high, with more than 7,600 households currently on the waiting list and over 300 homeless people living in temporary accommodation. It states that additional council housing “is the only way that we can end homelessness and ensure that households have a safe, secure, affordable home”.
During 2025–26, the council’s housing development team is expected to complete 61 new homes across three sites in Barry. Construction will also start or continue on five further sites, delivering an additional 241 homes.
The report says, “Lower increases in rents have a significant financial impact on the housing business plan and threaten the council’s ability to maintain, improve and build new homes.”
Rent levels are set in line with Welsh Government policy, which requires social landlords to ensure rents remain affordable and offer value for money. Annual comparisons show council rents in the Vale of Glamorgan remain well below private sector levels.
For three-bedroom homes, council rents are 37% lower than comparable private rents and 20% below the local housing allowance. For one-bedroom properties, rents are 28% lower than private rents and 6% below the housing allowance, although there are currently no such properties available locally at that rate. Council rents also remain lower than average housing association rents in the area.
The council said its housing income team supports tenants struggling to pay rent, with specialist advisers offering budgeting advice, help with benefit claims, income maximisation and access to grants and other support.
As part of the proposals, the rent for freestanding garages would rise from £10.06 to £10.49 per week. Charges at Ty Iolo hostel would increase from £223.95 to £233.58 per week. Temporary accommodation charges, including service and utility costs, would rise from £220.79 to £230.28 per week.
Charges for sheltered housing guest suites would also increase, while heating charges for sheltered properties are proposed to fall from £21.32 to £12.12 per week, reflecting actual costs in the previous year. Warden management charges would rise slightly from £12.55 to £13.03 per week.
If approved by cabinet, the proposals will go to full council on 12 January for final approval. The changes would come into effect from April 2026, with the first week of April remaining a non-chargeable rent week. Tenants would receive at least two months’ notice before the new charges take effect.
