Council tenants in Barking and Dagenham are set to see an increase in their rents in the 2026/27 financial year. The decision was made at a Barking and Dagenham Council Cabinet meeting on 9 December 2025, as part of a broader review of the Housing Revenue Account (HRA) budget and a 30-year business plan.

The Cabinet, led by Cllr Dominic Twomey, approved the rent increase to support the financial stability of the HRA, which is responsible for maintaining and improving council homes, regenerating estates, and developing new housing. The council is responsible for 19,747 residential properties, including 15,601 tenancies and 3,984 leaseholders.

The decision aligns with national policy to raise rents by the Consumer Price Index (CPI) plus 1%, resulting in a proposed 4.8% increase, as detailed in the HRA 2026-27 Report. The average rent across all properties will increase from £120.51 to £126.29 per week, a rise of £5.78. For example, the average rent for a three-bedroom property will increase from £132.94 to £139.32 per week, a £6.38 increase.

Cllr Maureen Worby, Cabinet Member for Adult Social Care, Health and Housing, presented the report, emphasising the need to demonstrate a viable HRA going forward. The national policy is to raise rents by consumer price index, I've said it once, so I can now call it CPI. And to use that plus 1% is the expected increase.

Aerial view of a residential area in Barking and Dagenham.
Aerial view of a residential area in Barking and Dagenham.

While acknowledging that no increase is ideal, Cllr Warby noted that the average rent increase per week must be viewed in the context of the affordable housing the council provides. The report also indicates that approximately 60% of the total rent roll is currently covered by benefits or Universal Credit, and these increases will be absorbed for those tenants.

For tenants who may face financial difficulties due to the rent increase, even if they are not receiving benefits or Universal Credit, the council offers support services. The HRA 2026-27 Report states that the Rents and Tenancy Sustainment service will provide individual support, including advice on budgeting, prioritising rent payments, and signposting to other agencies like the Homes and Money Hub and voluntary sector partner Beam, who specialise in assisting tenants with financial challenges.

The Cabinet noted the 30-year business plan for the HRA, ensuring balanced budgets, sustainable borrowing and debt repayment, and appropriate spending on housing assets and services. The report highlighted that investments rely on rental income, capital receipts from Right to Buy disposals, and some prudential borrowing. The plan, detailed in the HRA 2026-27 Report and Appendix A, ensures balanced budgets, sustainable borrowing and debt repayment, and appropriate spending on housing assets and services.

The council anticipates 230 Right to Buy sales for 2025/26, with a further 200 sales projected for 2026/27 as existing applications are processed. These capital receipts from Right to Buy disposals will contribute to funding investments in maintaining and improving the HRA stock.