Rent convergence from April 2027

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. 

Frequently asked questions about rent convergence, formula rent and changes from April 2027. 

Rent convergence is a way of making rents fairer and more consistent by gradually bringing rents closer to the government's “formula rent”. 

Formula rent is the government’s method for calculating social housing rents. #

Since 2001, homes available for social rent have been based on this calculation and the social rents must not be higher than the government’s formula rent. 

It is worked out based on: 

• the size of your home
• the value of the property 
• average income levels in the local area. 

It provides a set way of setting and checking the rent for each home. 

Rent convergence is happening because of a change in government policy that applies to social landlords. 

The aim is to reduce the gap between current formula rent, and the rent some social housing residents currently pay.  

In the past, social housing rents were not always set in the same way. This means that some similar homes in the same area can currently have different rents.  

The government’s new rules are intended to reduce these differences over time. It says this will help create a fairer and more equal approach to social housing rents. It will also support long-term investment in existing homes and the development of new social housing. 

Rent convergence will begin on 1 April 2027. It will happen gradually over a 10-year period.  

Nothing will change overnight. Any changes will be made slowly, a bit at a time of the 10 years. 

CPI stands for the Consumer Prices Index. It is a measure of inflation (how prices change over time.) The government uses it when setting the maximum annual increase for social housing rents. 

The September CPI figure is used when setting the permitted social housing rent increase for the following April. 

Not everyone's rent will change. It might:

• increase gradually
• stay about the same
• not change at all. 

If your rent is already at the formula rent for your home, you will not receive an additional rent convergence increase. 
If your rent is due to change, we will write to you to let you know in advance. 

Any change will depend on: 

• your current rent
• the type of home you live in
• where you live
• how your rent compares with the formula rent for your property. 

If your rent changes, we will contact you directly and explain:

• your current rent
• your new rent
• the difference between the two amounts
• why the change is happening. 

For homes affected by rent convergence, rent can increase by: 

• From April 2027: the normal annual increase of CPI + 1%, plus an additional £1 a week
• From April 2028: the normal annual increase of CPI + 1%, plus an additional £2 a week

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

We will write to you to explain the actual change to your rent. 

The aim of rent convergence is to bring social rents into line with formula rent, so that people in similar sized homes pay a similar amount.  

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. 

This is an example. Please not the amount will be different for every affected home. It will depend on your current rent. The table below shows how the convergence increase will affect three different homes in the first and second year.  

These are examples only. They do not show what will happen to your rent. We will write to you with your exact rent before it changes. 

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. 

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