Understanding Rent Convergence: What’s It All About?
Monday 7th of July 2025
Rent convergence is the government’s plan to bring all social rents into line with a standard ‘formula rent’, so there’s more fairness and predictability—regardless of your landlord or how long you’ve lived in your home.
Now, the government is asking for your views on how to make this change happen fairly.
What Is Formula Rent?
Formula rent is a standard calculation used to set most council and housing association rents. It’s based on:
- Property value
- Local earnings
- Number of bedrooms
Formula rent helps make sure similar homes in the same area charge similar rent levels—aiming to be affordable, transparent, and consistent.
So, What’s the Issue?
Over the years, some social housing providers froze, capped, or deviated from this formula. As a result:
- Some tenants pay more or less than others for similar homes
- New tenants often pay different rates from long-standing ones
- Rent-setting has become confusing and unfair in some cases
What’s the Government Proposing?
The government wants to:
- Phase in rent convergence over several years (likely 10 years)
- Make sure no one faces a sudden big rent jump
- Bring all rents back in line with the national CPI+1% formula
- Give landlords and tenants clear rules and long-term certainty
What’s the Consultation Asking?
The Department for Levelling Up, Housing and Communities (DLUHC) wants YOUR opinions on:
1. How fast should rents converge?
- (E.g. 10-year plan vs faster or slower approaches)
2. Who should it apply to?
- All tenants? Just new tenancies? Existing ones too?
3. Should there be limits on yearly increases?
- For example: a cap of £4 or £5 extra per week
4. Should convergence happen before or after other reforms—like Decent Homes updates or retrofit work?
5. What support should be in place for tenants who may face gradual rent increases?
Key Dates
Consultation Closes: 27 August 2025
Have your say here.
Why It Matters
- Helps create transparent, fair rent setting
- Could mean gradual changes to your rent, especially if it’s currently well below formula levels
- May impact how housing associations and councils plan future services
- Tenant voices will shape how gently or quickly this happens
How Can I Get Involved?
1. Complete the consultation survey online
2. Join your housing provider’s tenant panel or forum
3. Contact organisations like Tpas, Shelter, or CIH if you want to respond jointly or need help
Final Thought
This isn’t just a technical rent policy—it affects every social housing tenant in the country. It’s your chance to shape how rents are set for the next decade and beyond.
Tpas have been working hard to lobby for a positive change and we will continue to do so with these new proposals. To that extent we have put together a number of events free to our members where we can brief you on what these proposals mean and gather your opinions.
Join us on Thursday 31st July 2025, 10:00am - 12:00pm for this session.
Your Voice Matters: Policy Consultation - Rent Convergence Consultation