Reeves Budget Could Push Dudley Council Tenants’ Rent Above Government Limits

Dudley Council tenants face a rent increase of £4.76 per week next year, with the possibility of additional rises pending government decisions.

Chancellor Rachel Reeves is set to confirm rent convergence in her upcoming budget on November 26. This measure aims to gradually raise social housing rents that currently fall below the government’s ‘formula rent’ benchmark—the rent charged to new tenants.

If implemented, rent convergence could add an extra £1 to £2 per week on tenants’ bills. Dudley Council has already proposed a 4.8 percent rent increase for the 2026/27 financial year, the maximum permitted by the government, bringing average weekly rent to £103.94.

At the November meeting of the Housing and Assets Scrutiny Committee, Group Director Kathryn Jones emphasized the challenge: “We need to balance affordability for tenants with maintaining a sustainable and viable Housing Revenue Account.”

A committee report explained that the government’s convergence policy intends to raise funds for investment in new and existing social housing by increasing council rents toward the formula rent level. Currently, 12,101 council tenants in Dudley pay less than formula rent, and smaller increases would apply where the difference is under £1.

The report concluded that the council will consider rent convergence before finalizing the 2026/27 rent increase, taking into account details from the upcoming Autumn Statement.

Meanwhile, tenants paying service charges can expect some relief. Introduced in January 2025 at an average of £8.73 per week, these charges are set to decrease to £8 in the next financial year, following cost reductions and efficiency improvements.