Rent convergence
What is rent convergence?
The government has re- introduced rent convergence to gradually allow registered housing providers to align social housing rents, so tenants pay similar rents for similar properties. Social rents are currently calculated using a formula set by the Regulator of Social Housing, known as formula rent. However, we have found that some of our rents fall below the formula rent due to changes overtime in rent policies and charging structures. This has resulted in newer tenants paying much more rent for their home than those who have held their tenancy for much longer. Rent convergence allows for social rent properties that are currently below ‘formula rent’ to increase by an additional amount each year until they align with formula rent.
What will rent convergence achieve?
Not all tenants are paying the same rent for similar properties. Rent convergence ensures that identical properties are charged similar rents based on the property itself, and not based on when a tenant moved in. Currently, neighbouring households in similar homes can pay different rent solely due to historical rent policies. Rent convergence aims to address the disparity between actual rents and formula rents and overtime achieve greater fairness between the rents paid by our tenants of social rent homes.
What does rent convergence mean for me?
There is no immediate change for tenants this year. Any changes in rent due to rent convergence will come into effect from 1 April 2027.
The government sets the policy on how much we can increase your rent each year, which is based on the Consumer Price Index (CPI) for September+ 1%. For those properties that are currently below formula rent, a gradual increase can be applied over a 10 year period on top of the initial rent increase. This is as follows:
• For the period from 1 April 2027 to 31 March 2028, up to an additional £1 on weekly rents can be applied until the rent is at formula rent.
• From 1 April 2028, up to an additional £2 on weekly rents can be applied until the rent is at formula rent.
• The maximum weekly increase will then remain capped at up to £2 per week for the rest of the rent convergence policy period, which is 10 years until 2036.
Please be advised that rent convergence is optional for all registered providers, and that we can apply it in some years and not others, or at a slower rate. However, this would mean that it would take longer to achieve consistency across our housing stock rents.
When will I find out if my rent will increase due to rent convergence?
At this stage, we are unable to tell you whether your rent payments will be affected. All tenants will be notified in their Annual Rent Setting letter whether their rent will increase due to rent convergence, and if so, how much it will increase by. All tenants will receive this letter in March 2027.
Not all tenants will be affected by rent convergence and some will see no change to their rent payments other than the annual rent inflationary increase. For tenants that are affected, the amount that their rent will increase will vary from household to household.
Please be advised that if you are in receipt of housing benefit, it is likely your benefit will cover the cost of any increase to your rent.
Who can I speak to about rent convergence?
We understand that this announcement about rent convergence may cause concern or worry. Should you have any concerns or queries about rent convergence, we are on hand to offer support if you need it.
We would also like to invite your comments and views on rent convergence. If you would like to share your views, please email housingfinance@dartford.gov.uk or write to us at: Housing Finance Team, Dartford Borough Council, Civic Centre, Home Gardens, Dartford, Kent, DA1 1DR. Please provide us with your comments by Friday 18 December 2026.