Rent convergence

The government has introduced new rules that allow social landlords to apply rent convergence. Regenda Homes has decided to use this option from April 2027.  

We believe this will help make rents more consistent for people living in similar homes . The additional income will also be reinvested in existing homes, services and future affordable housing.  

Not everyone’s rent will be affected. If yours is, we will write to you before it changes and explain exactly what it means for you.  

Your questions answered

We understand you might have questions about rent convergence and what this means. Use the accordions below to find answers about upcoming changes and what they might mean for you.

What is rent convergence?

Over the years, social housing rents have not always been worked out in the same way. This means that some people living in similar homes in similar areas can currently pay different amounts of rent. 

Rent convergence is a government-approved way for social landlords to gradually bring current rents closer to the formula rent, so people living in similar homes pay similar amounts. 

Regenda Homes has decided to apply rent convergence from April 2027. 

What is formula rent?

Formula rent is the government's standard calculation of what social rent should be for different homes. It is worked out based on things like the size of the home, local wages and property values. It is used to help make sure rents are consistent for similar homes.

Why has Regenda decided to apply rent convergence?

The government has given social landlords the option to apply rent convergence where rents are below formula rent. 


Regenda Homes has chosen to apply rent convergence because we believe people living in similar homes should pay similar rents. The additional income will be reinvested in maintaining and improving existing homes and services and helping us build more affordable homes in the future. 

Why is my rent changing?

Our records show that your rent is lower than the government's formula rent for your home. Because of this, your rent will be affected by rent convergence from April 2027. 

What will happen to my rent?

If your rent is below formula rent, it may gradually increase. The amount will depend on your home and how your current rent compares with its formula rent.  

Your rent will still have the usual yearly increase, and an additional rent convergence amount will be added. The government has set limits on this increase:  

  • From April 2027, the increase will be up to £1 per week. It is capped at this amount and may be less for your home.  

  • From April 2028, the increase will be up to £2 per week. It is capped at this amount and may be less for your home.  

  • The maximum increase will then remain at £2 per week until your rent reaches formula rent.  

The additional increase will only apply while your rent remains below the formula rent for your home. 

How much will my new rent be?

We can’t tell you your exact rent yet. We will write to you again in February 2027 with your current rent and your new rent from April 2027.

When will it start?

Rent convergence will start from 1 April 2027. We will write to you before then to confirm the exact rent you will pay.

Will everyone's rent increase?

No. Rent convergence only affects homes where the current rent is below the formula rent for that property. Not all customers will be affected.

Why am I being affected when my neighbour isn't?

Although two homes may look similar, rent levels can differ because of when the home was built, when it was let, and how rent rules have changed over time. This means some customers will be affected and others won't.

If your neighbour isn’t affected by rent convergence, this is likely because they have been paying the correct amount. You are affected because you have been paying below the government’s formula rent for your home and we are now correcting this. 

Will my rent increase forever?

No. The additional rent convergence increase only applies until your rent reaches the formula rent for your home. Once it reaches that level, the additional rent convergence increase will stop.

Your home may already be near to formula rent. Someone else’s home might be further below it. This means the time it will take will be different for every home - some rents may reach formula rent quickly, while others may take several years.

The timescale depends on how far the current rent is below the formula rent for the property. 

What is CPI?

CPI stands for the Consumer Prices Index. It measures how the cost of everyday goods and services changes over time. The government uses CPI when setting annual social housing rent increases.

Will Housing Benefit or Universal Credit help with the increase?

If your rent is currently covered by Housing Benefit or the housing costs part of Universal Credit, this support will usually increase when your rent increases. 

However, this will depend on your individual circumstances. If you're worried about how this change may affect you, our Income Team can help. 

When will I know if my rent is changing?

We will write to you directly if your rent is affected. Your letter will explain: 

  • what your new rent will be
  • how it has been calculated
  • when it will take effect
  • how to contact us if you have questions or need support. 

What support is available? 

We have a specialist team who can help with: 

  • benefits checks
  • budgeting advice
  • managing your rent
  • understanding any changes to your rent. 

Please contact us if you're worried about your rent or managing your money. We're here to help. 

Find out about the help and support available and contact our Income Team: Money and benefits | Regenda Homes

We're here to help

We know that any conversation about rent increases can be worrying. If you have concerns about paying your rent or managing your money, our Income Team can: 

  • check whether you are receiving all the benefits and financial support you are entitled to
  • help you look at your household budget
  • explain the change to your rent
  • talk through any concerns you have. 

Contact our Income Team

We know it can be difficult to know where to turn if you’re worried about money. But there is a lot of support available. Our Income Team can provide advice and support and may be able to access additional benefits for you.

There are lots of way to contact our income team:

Email:
info@regenda.org.uk

Call:
0344 7360 066 and ask to speak to a member of the Income Team.

We can call you:
You can request a call back from our Income Team by filling in our online form. A member of our Income Team will call you back within 5 working days.

Request a call back