Croydon Council Announces Social Housing Rent Increase of 4.8%
Croydon Council has confirmed plans to raise social housing rents by 4.8 per cent, effective from April 1, 2026. This decision, set for Cabinet approval on February 11, is framed as an unavoidable measure to address mounting financial pressures and comply with stringent new safety regulations. The increase is projected to generate an additional £4.35 million in revenue for the 2026–27 financial year, aligning with the government's Social Housing Rent Policy, which permits annual hikes based on the Consumer Price Index plus 1 per cent.
Drivers Behind the Rent Hike
Council officials cite a combination of soaring inflation and legal obligations such as Awaab's Law as primary factors necessitating the rise. Awaab's Law mandates swift action on damp and mould hazards, requiring landlords to address emergency issues within 24 hours or 10 working days. The funding will also support essential safety upgrades, fire compliance, and the clearance of vacant properties to improve housing availability. Additionally, the council highlights the long-term impact of a 7 per cent rent cap imposed in 2023, which resulted in an estimated £57.1 million loss in income over 30 years, straining the Housing Revenue Account budget.
Impact on Tenants and Financial Support
The 4.8 per cent increase extends beyond rent to include service charges, garage rents, and parking spaces, affecting all council housing tenants. For approximately 70 per cent of tenants receiving Housing Benefit or Universal Credit, these costs will be largely absorbed by the benefits system. However, the remaining 31 per cent of self-paying tenants may face financial risk. To mitigate hardship, the council plans to continue its discretionary HRA Hardship Fund, pending government approval, offering support to those in severe financial difficulty.
Future Changes and Tenant Feedback
Looking ahead, tenants should anticipate further adjustments under the government's social rent convergence policy starting April 2027. This policy allows the council to add an extra £1 per week in 2027, rising to £2 per week in 2028, for rents below the standard formula level, in addition to annual increases. The council notes that resident feedback from an October 2025 survey, with nearly 1,000 responses, prioritised repairs and maintenance, influencing decisions such as new contracts for grounds maintenance, though these will be reflected in service charges.
Formal notices of the new rent levels will be issued in early March, providing the required 28 days' notice before implementation. This move underscores the broader challenges in social housing funding amid limited government support and rising regulatory demands.
