The government is reviewing how social housing rents are set. As part of this, a policy called rent convergence may be reintroduced.
We use a calculation called ‘formula rent’ which has been set by the government to make rents fairer and more consistent across social housing. This is a standard calculation based on a home’s size, value, location and number of bedrooms.
Every year, the government sets the limit on rent increases for social housing providers. Normally, rents go up by inflation (CPI) + 1% each year. However, this has not always been the case and in some years rents were capped at a level well below inflation.
Under rent convergence, homes with lower rents could see a small extra increase (for example, £1 or £2 per week) on top of that, until rents match the government’s target rent level.
What this could mean for GCH
GCH rents are currently among the lowest in the region, so rent convergence would allow us to start moving gradually towards target rent levels in the years ahead.
It’s important to note that not everyone will be affected. This change would only apply to some social rent homes. Affordable rent and shared ownership homes are not included, and customers whose homes have been let in the past couple of years will already be on the target rent, so they would not be affected by rent convergence.
No decisions have been made yet, but our Board will be considering rent levels for next year soon. Rent convergence would allow us to increase the level of investment in our homes and services.
We’d continue to offer support for customers who may find any increase difficult.
Why your views matter
Before a final decision is made, we’d like to hear your views on:
- How you feel about possible rent increases
- What support would help if your rent increases
Your feedback will be shared with our Board before they make their decision.
How to have your say
Our consultation runs from 11 to 28 November. You can share your views by completing our short survey below:
Take the Survey
What happens next
When the consultation closes, we’ll review all feedback and share a short summary of what residents told us.
Customers will receive their annual rent letter in February, which will explain any changes and the support available.
Thank you for taking the time to share your views. Your feedback helps us make fair and informed decisions for the future.