Council tenants in the south London borough of Lewisham are facing a proposed weekly rent increase of nearly £6 from next spring.
Proposed Rise in Line with Government Formula
Lewisham Council has put forward plans to raise council rents by 4.8 per cent for the 2026/27 financial year, in line with national government policy. This would see the average weekly council rent increase by £5.95, starting in April 2026.
The proposed hike is calculated using the government's new rent formula, which is based on the Consumer Price Index (CPI) plus an additional one per cent. With the CPI recorded at 3.8 per cent in September 2025, the addition of the extra one per cent results in the total 4.8 per cent increase.
Financial Pressures on Council Housing
A report presented to Lewisham Council's Housing Select Committee on Wednesday, January 14, 2026, outlined the significant financial pressures facing the Housing Revenue Account (HRA). The council stated that recent rent caps and reductions have severely impacted its ability to maintain decent homes, invest in existing stock, meet building safety regulations, and continue building new social housing.
Beyond the standard increase, some tenants could face additional weekly rises of between £1 and £3 under a revived government policy known as Rent Convergence. This policy aims to bring all council rents in line with a national 'formula rent'. Increases would be gradual and would cease once a property's rent reaches the target level. The final value for this convergence is expected to be confirmed by the government before the end of January 2026.
Additional Charges Also Set to Rise
The proposed changes extend beyond basic rent. Garage rents in the borough are slated to increase by 4.5 per cent, or 94 pence per week, raising the average basic weekly charge from £20.95 to £21.89.
Service charges are also projected to climb significantly. For the approximately 1,275 tenants in estates or blocks with a communal heating system, their service charge is set to rise by £7.57 per week (22.28 per cent). For all other tenants, where the service charge does not include energy, the increase will be £2.36 weekly (14.14 per cent).
The final decision rests with Mayor of Lewisham, Brenda Dacres, and her Cabinet. They will consider the proposals alongside feedback from residents and the Housing Select Committee as part of the overall council budget setting report, which is due on February 11, 2026.
