The government has confirmed new rules for rent convergence in social housing. This affects some homes where rents are currently below the standard “formula rent.”
From April 2027, these rents can increase by inflation (CPI) + 1% plus £1 per week, and from April 2028 by CPI + 1% plus £2 per week, until they reach the government’s target level. Once a home reaches this level, future increases will return to the usual CPI + 1%.
Rent convergence helps make rents fairer across similar homes and ensures landlords have the income needed to maintain properties, meet safety standards, and provide services.
For GCH customers, most rent increases for 2026–27 will follow CPI + 1% only.
No decisions have been made for future years, but our Board will consider rent levels in due course.
What is rent convergence?
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 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.
Rent convergence would allow us to increase the level of investment in our homes and services and we’d continue to offer support for customers who may find any increase difficult.
How to have your say
We wrote to all GCH customers in November 2025 to ask for their views on rent convergence. If you would like to share your views, please use our feedback form