Social housing tenants across Ceredigion, Powys and Gwynedd could see their rents increase by up to four percent next year under new limits confirmed by the Welsh Government.

The maximum annual uplift for 2027/28 was announced on Wednesday, 28 October, following the publication of September's inflation figures.

However, the four percent figure is a ceiling rather than a compulsory increase, meaning individual social landlords will determine whether to raise rents and by how much.

For a household currently paying £100 a week, a four percent increase would mean an additional £4 weekly, equivalent to £208 over a year.

Someone paying £120 a week would see their rent rise to £124.80 if the full increase were applied, costing an additional £249.60 annually.

The announcement follows September's Consumer Prices Index inflation rate of 3.5 percent.

The Welsh Government says its approach seeks to balance affordability for tenants with the financial pressures facing social housing providers.

Cabinet Minister for Local Government, Housing and Planning Siân Gwenllian stressed that the increase was not automatic.

"This is the maximum permitted annual increase, it is not an automatic uplift for social landlords to apply," she said.

The policy applies to general needs and sheltered social housing, although certain specialist accommodation and properties let at market or intermediate rents fall outside the standard.

The Welsh Government argues that predictable rental income is necessary to maintain existing properties, improve energy efficiency and fund new social housing.

It has also committed to developing a longer-term affordability framework to make rent-setting more consistent and transparent.

A further report examining how social landlords have implemented rent and service charge requirements is expected to be published.

Individual tenants will need to await confirmation from their landlord to establish whether their rent will increase next April.