Key Points
- Lewisham Council proposes a 4.8 per cent increase on council rents for the 2026/27 financial year, aligning with government policy.
- Average council rent in Lewisham could rise by £5.95 per week from April 2026.
- Increase calculated using government’s rent formula: CPI of 3.8 per cent from September 2025 plus 1 per cent, totalling 4.8 per cent.
- Report presented to Lewisham Council’s Housing Select Committee on Wednesday, January 14, 2026.
- Housing Revenue Account (HRA) faces “significant challenges” due to past rent caps and reductions, impacting home maintenance, stock investment, building safety, regulatory compliance, and new social home construction.
- Potential additional increases under revived Rent Convergence policy for properties below formula rent, ranging from £1 to £3 per week until alignment.
- Government expected to confirm final rent convergence value before end of January 2026.
- Garage rents to increase by 4.5 per cent, adding 94p per week, raising average from £20.95 to £21.89.
Lewisham (MyLondon News) January 17, 2026 – Lewisham Council has proposed a 4.8 per cent rent increase for council tenants, equating to around £6 per week on average from April 2026, in line with the government’s new rent formula. This move comes as the council grapples with financial pressures on its Housing Revenue Account. Tenants face potential further hikes under a revived policy known as Rent Convergence.
Why is Lewisham Council Proposing This Rent Increase?
The proposal stems directly from the government’s rent formula, which combines the Consumer Price Index (CPI) with an additional 1 per cent. As reported in the MyLondon article, the CPI stood at 3.8 per cent in September 2025, resulting in the overall 4.8 per cent figure when the extra 1 per cent is added. This formula dictates the maximum allowable increase for council rents in the 2026/27 financial year.
Lewisham Council’s report, presented to the Housing Select Committee on January 14, 2026, details the average weekly rise of £5.95 across council properties. The council states this adjustment is essential to address ongoing obligations. Without it, the Housing Revenue Account (HRA) would struggle further amid “significant challenges,” as noted in the document.
Past rent caps and reductions have “severely” hampered the council’s capacity to maintain decent homes standard, invest in existing stock, comply with building safety and regulatory requirements, and build new social homes, according to the report summarised by MyLondon.
What Challenges Does the Housing Revenue Account Face?
The HRA, which manages council housing finances, confronts multiple pressures outlined in the committee report. Recent government-imposed rent caps and reductions have eroded funding streams, limiting proactive maintenance and development. This has directly affected the council’s ability to uphold the decent homes standard, a benchmark for habitable social housing.
Investment in existing stock has suffered, with resources stretched thin for essential upgrades. Building safety compliance, particularly post-Grenfell scrutiny, demands substantial outlays that past restrictions have curtailed. Regulatory requirements from bodies like the Regulator of Social Housing add further strain.
The council’s new supply plans, aimed at expanding social housing, are also at risk without this revenue boost. As per the MyLondon coverage, these challenges underscore the necessity of the proposed increase to stabilise operations.
How Will Rent Convergence Affect Tenants?
Rent Convergence, a revived government policy, targets properties rented below the standard ‘formula rent’ level. Under this, affected tenants could see gradual additional increases of £1 to £3 per week until rents align with the formula. Once reached, these extra hikes cease.
The policy seeks to standardise rents across social housing. The government plans to confirm the final convergence value before January 2026 ends, providing clarity for councils like Lewisham. MyLondon reports this as a potential layer atop the baseline 4.8 per cent rise.
No specific number of Lewisham properties below formula rent is detailed in the report, but the measure applies nationally where discrepancies exist. Tenants in such homes should anticipate phased adjustments starting April 2026.
What About Garage Rents in Lewisham?
Garage rents face a separate 4.5 per cent uplift, translating to 94p more per week. This raises the average basic weekly charge from £20.95 to £21.89. The proposal mirrors the council-wide push for revenue to offset HRA deficits.
This increase applies uniformly to council-managed garages. It forms part of the broader financial strategy presented to the Housing Select Committee. MyLondon highlights this as a targeted adjustment to support housing-related expenditures.
When and How Was This Proposal Presented?
The key report reached Lewisham Council’s Housing Select Committee on Wednesday, January 14, 2026. Titled in line with standard council documentation, it laid out the rent calculations, HRA context, and convergence details. Committee members reviewed the figures, including the £5.95 average weekly council rent rise.
No direct quotes from councillors appear in the MyLondon summary, but the document attributes the “significant challenges” phrasing to council analysis. The proposal now awaits formal approval, likely through democratic processes.
What is the Government’s Rent Formula?
The formula caps increases at CPI plus 1 per cent, ensuring inflation-linked adjustments. September 2025’s 3.8 per cent CPI yielded the 4.8 per cent total. MyLondon links this to prior coverage of south London councils adopting similar hikes.
This approach balances tenant affordability with council sustainability. It applies across England, standardising local authority responses. Lewisham adheres strictly, avoiding discretionary excess.
How Does This Fit Broader South London Trends?
MyLondon references a previous story on south London council rent announcements, indicating regional alignment. Other boroughs face comparable pressures from the same formula. Lewisham’s proposal reflects this pattern, with no deviation reported.
The article from MyLondon, covering Lewisham Council comprehensively, positions this as part of ongoing housing finance debates. Tenants across the capital watch as CPI-driven rises become annual norms.
What Happens Next for Approval?
Post-committee review, the proposal advances to full council scrutiny. Public consultation may follow, though not specified in the report. Approval would implement changes from April 2026, coinciding with the financial year start.
Tenants can engage via council channels. The government’s rent convergence confirmation by late January will refine impacts. MyLondon’s reporting ensures transparency on timelines.
Why Mention Building Safety and New Homes?
The report explicitly ties rent revenue to these priorities. Building safety regulations, intensified since 2017, require ongoing investment. Decent homes compliance demands similar funds.
New social home construction counters housing shortages. Past caps delayed these goals, per council assessment. The 4.8 per cent rise aims to reinstate progress.
Tenant Impacts in Detail
Average tenants face £5.95 weekly, or roughly £310 annually. Combined with convergence, some could exceed £6-9 weekly total. Garage users add 94p, a modest but cumulative burden.
No exemptions detailed, though formula rent properties cap extras. Inflation at 3.8 per cent underscores cost-of-living context. Councils like Lewisham prioritise HRA viability.
This proposal, rooted in the January 14 report, encapsulates fiscal necessities. As MyLondon reports, it navigates government mandates amid local strains. Full implementation hinges on approvals, with convergence details pending.
