Rent rise revealed but budget could add more

Dudley Council tenants look set to pay an extra £4.76 per week in rent next year but the bill could rise further.

In her budget on November 26, chancellor Rachel Reeves is expected to confirm a measure called rent convergence, which is designed to increase rents for social properties that are below a level called ‘formula rent’.

If Ms Reeves confirms rent convergence an extra one or two pounds per week could be added to tenants’ bills.

For the 2026/27 financial year Dudley Council plans to increase rents by 4.8 percent, the maximum allowed by the government, to an average of £103.94 per week.

At November’s meeting of the council’s Housing and Assets Scrutiny Committee, Group Director Housing and Assets, Kathryn Jones, said: “When we are looking at rent setting we need to take a balance between what is affordable for our tenants and what we need to do to ensure the Housing Revenue Account remains sustainable and viable.”

A report for the committee explained the government intended to implement the convergence scheme in a bid to raise extra cash for investment in new and existing social housing.

The plan aims to gradually increase existing rents to the ‘formula rent’ level, which is the rent that would be charged for a property when it is let to a new tenant.

The report added 12,101 council tenants currently pay less than formula rent and the increase would be less if the difference is under £1.

The report said: “The council will consider convergence prior to the final annual increase for 2026/27 being agreed. Any recommendation will take into account the detail in the autumn statement.”

There was better news for people paying service charges which were set at an average rate of £8.73 when they came into force in January 2025.

Councillors were told reductions in costs and other efficiencies allowed the authority to cut the average charge to £8 in the next financial year.