Lewisham Council is proposing a 4.8% increase in council rents for the upcoming financial year, which would raise the average weekly rent by £5.95. The current average weekly rent stands at £123.96. This proposed increase is based on the government's current Rent Policy, which permits registered providers to increase rents by the Consumer Price Index (CPI) plus 1%. The CPI figure for September 2025 was 3.8%, leading to the base increase of 4.8%.
The decision, discussed at a Housing Select Committee meeting on January 14, 2026, is contingent on government confirmation regarding a potential 'convergence element'. This element, aimed at aligning rents for similar properties nationwide, could add an additional £1, £2, or £3 per week to rents. The government is expected to announce the outcome of its consultation on reintroducing rent convergence in January 2026. If the highest potential convergence element of £3 per week is implemented, the average weekly rent would rise to £132.91, marking a 7.22% increase.
This proposed rent increase is part of a broader financial strategy for the Housing Revenue Account (HRA). The HRA faces significant challenges, including the impact of recent rent caps and reductions that have hampered the council's ability to maintain decent homes, invest in existing stock, meet building safety and new regulatory requirements, and build new social homes. Furthermore, the council aims to deliver sustainability and carbon reduction ambitions, improve thermal comfort for tenants, and address hazards such as damp and mould. Currently, 26% of tenanted homes do not meet the Decent Homes Standard, though this is projected to reduce to 17% by March 2025. Increasing debt interest charges due to borrowing for HRA investment and rising interest rates also contribute to these financial pressures.
The increased revenue from rent and service charges is intended to be reinvested back into the HRA to ensure its sustainability. This will support the council's financial strategy by allowing for continued investment in repairs, services, stock maintenance, and new social home building, contributing to the goal of delivering new homes and improving housing quality.
Alongside the rent increase, service charges are also set to rise. Tenants with communal heating charges will see an average increase of £7.57 per week (22.28%), while those without communal heating will face an average increase of £2.36 per week (14.14%). Garage rents are proposed to increase by 4.5%.
Residents were consulted on these proposals through meetings held in December 2025. Feedback from these consultations, including concerns about persistent repairs issues and rising costs, will be considered by Mayor and Cabinet in February 2026. In response to concerns about persistent repairs issues, Lewisham Council has implemented several measures. These include improving web-based information for tenants, working with a residents' working group to refine the Damp & Mould policy, creating a specialist Damp & Mould team, and improving call waiting times with a direct line for related reports. The council has also introduced a new repair ICT system, expanded the remit of electrical and gas contractors, and is investing in insulation through the SHDF capital investment. Further improvements include enhancing ventilation and insulation, exploring self-service kits for minor damp and mould cases, introducing a new DLO team for damp and mould response, and employing decorators as first responders. A 12-week call-back service is in place to check for the recurrence of damp and mould, and the council is working to reduce the backlog of slight and moderate HHSRS hazards. Residents will be informed of the final rent figures after the government's confirmation of the 'convergence element'.
Further details on the rent and service charge proposals can be found in the HSC Rent Rise Report 2026-27 Final. Information regarding resident consultations is available in Appendix 1b Tenants rent consultation comments 2026-27 Lewisham Council Tenants and Appendix 1a Residents rent and service consultation comments 2026-27 Brockley PFI.
