Kentish Town residents in council housing may see their rents increase in April 2026, as Camden Council grapples with financial pressures on its Housing Revenue Account (HRA). The Kentish Town District Management Committee (DMC) discussed the possibility of rent increases at its meeting on 25 November 2025, as detailed in the HRA Rent and Budget Setting Report 202627 Discussion.
The council is awaiting the results of the Government's Rent Consultation, expected at the Autumn Budget (26th November 2025), which will determine the mechanism for rent increases.
HRA's across the country are facing difficulties in setting balanced budgets due to changes in the self-financing model. Camden's HRA has lost £201 million in rental income since 2016, undermining the financial stability of its housing stock. The council is now exploring options to ensure financial sustainability, including potential rent increases.
This loss is attributed to deviations from the original self-financing settlement deal, including changes to assumed income streams. Originally set at RPI + 0.5% + £2/week, these are now subject to Rent Standards (recent years CPI + 1%) or, during the Welfare Reform (2016/17-2019/20), 1% annual cuts for four years.
The report considered increasing rents by the maximum permitted amount of 4.8%, which would generate £8.1 million in income for the HRA. The committee also discussed the government's rent consultation, which could allow rents to increase by an additional £1 or £2 per week.
Service charges for caretaking, grounds maintenance, CCTV, and other services could also rise, with potential increases ranging from 2% to 10%. Additionally, a £2 per week increase for tenants renting garages and an 11% increase for commercial garage rents are under consideration.
One strategy under consideration is 'rent convergence', which would allow the council to increase rents on properties that are currently below 'formula rent' (a government calculation of the theoretical rent level for a property) until they reach that level. According to the HRA Rent and Budget Setting Report 202627 Discussion, 99% of Camden properties are below formula rent, with an average gap of £19.49 per week.
The DMC was scheduled to give its views on the council's strategy to consider rent increases from April 2026, including rent convergence, subject to government announcements. The Kentish Town District Management Committee will be asked for their views on the council's strategy to consider rent increases from April 2026 at the joint DMC meeting in January. A list of the consultation questions that will be put before DMCs is in Appendix B.
