£3 per week social rent convergence called on by boroughs

Fahad Redha

January 13, 2026
3 min read

£3 per week social rent convergence called on by boroughs

London Boroughs has called for £3 per week social rent convergence from April 2026. The government’s upcoming decision on social rent convergence will “lay the financial foundations” for building thousands of new council homes stabilising social housing budgets, it said.

With the government set to confirm the policy later this month, the cross-party group is calling on the government to enable a social rent convergence rate of at least £3 per week from April. Rent convergence, which was government policy between 2002 and 2015, helps ensure residents in similar socially rented properties pay the same amount in rent.

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Amid a “worsening crisis facing social housing finances in the capital,” London Councils says its analysis reveals that rent convergence at £3 per week is “crucial” for:

Boosting resources for building much-needed new social housing. Failing to enable £3 per week rent convergence could mean at least 7,000 fewer council-led homes over a decade compared to if boroughs secured the additional revenue.
Reducing homelessness rates and temporary accommodation pressures through expanded social housing provision – creating a net saving in government spending of at least £115m over the next decade in lower temporary accommodation costs.
Reversing the spending cuts boroughs are currently required to make in their council housing budgets due to costs exceeding income. Without additional revenue, boroughs in the capital will be forced to make a real-terms reduction of £269m in spending on council housing repairs, management, and resident services over the next four years in order to balance their council housing budgets (Housing Revenue Accounts).

It also emphasised how “vital” it is that social rent convergence is introduced from April along with new social rent levels for 2026-27. Any delay, it added, will mean boroughs’ council housing costs will continue to outstrip their income, and worsen pressure on budgets. This, it said, will “jeopardise council housebuilding, as well as undermine progress on decarbonisation and raising standards in London social housing.”

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