Haringey Council has approved rent and service charge increases for the upcoming financial year, a decision aimed at ensuring the long-term financial health of its Housing Revenue Account (HRA) and facilitating investment in council homes.
The Cabinet Member Signing meeting on Thursday, February 26, 2026, saw Councillor Sarah Williams, Cabinet Member for Housing and Planning and Deputy Leader, sign off on a 4.8% rise in rents for existing tenancies. This increase aligns with the government's permitted annual adjustment of the Consumer Price Index (CPI) plus 1%, based on the September CPI of 3.8%.
For general needs and sheltered/supported housing, the average weekly rent is set to increase by £6.64, from £138.38 to £145.02. The government policy allows for a 10-year rent settlement for social housing from April 1, 2026, permitting annual increases of CPI plus 1%. The report also noted potential future government policies on rent convergence, which could lead to further increases to align some rents with 'formula rent' levels. The 'formula rent' levels for 2026/27 are detailed by the number of bedrooms: £130.25 for 1 and bedsits, £154.23 for 2 bedrooms, £176.76 for 3 bedrooms, £204.58 for 4 bedrooms, £235.34 for 5 bedrooms, and £246.50 for 6 or more bedrooms. Future increases due to rent convergence policies are planned as follows: 'Rents will be allowed to increase by £1 a week in 2027/28 and by £2 a week from 2028/29.' This policy allows rents for Social Rent properties below 'formula rent' to increase by these amounts annually, over and above the CPI+1% limit, until they 'converge' with formula rent.
In addition to rent hikes, the meeting also approved proposed average increases in service charges. These charges are designed to cover the full cost of services provided to tenants, such as concierge, grounds maintenance, and communal lighting. The services included in service charges are: Concierge, Grounds maintenance, Caretaking, Street sweeping (Waste collection), Estates road maintenance, Light and power (Communal lighting), TV aerial maintenance, Door entry system maintenance, Sheltered housing cleaning service, Good neighbour cleaning service, Window cleaning service, Converted properties cleaning, and Heating. For sheltered and supported housing, additional support charges include Sheltered Housing Charge, Good Neighbour Charge, and Additional Good Neighbour Charge. The cost of each service is determined by dividing the budgeted cost of providing the service to tenants by the number of tenants receiving the service. The amount tenants pay increases where the cost of providing the service is anticipated to increase, and decreases when the cost reduces or if there has been an over-recovery in the previous year. Some service charges will see increases, including Caretaking (up £0.50 to £9.75) and Concierge (up £0.45 to £27.84). Conversely, charges for Communal Lighting and Door entry system maintenance are set to decrease. For example, the proposed average weekly charges for Caretaking increased by £0.50 to £9.75, while Communal Lighting decreased by £0.21 to £3.24.
The decisions are intended to enable the council to manage and maintain its housing stock, deliver essential services to tenants and leaseholders, and support the development of new council homes. The HRA operates as a ring-fenced fund, meaning its income is exclusively allocated to housing-related expenditures, as mandated by the Local Government Act 1989.
The report referenced the Social Housing (Regulation) Act 2023, which governs the HRA and services for council tenants and leaseholders, with an increased emphasis on resident engagement. The HRA is required to maintain a robust management function, offer value for money, and meet residents' needs.
Tenants will be provided with at least four weeks' notice of the new rents and service charges, which will come into effect on April 6, 2026. While formal consultation on these increases is not legally required, the council did present its HRA business plan and gather feedback from tenants and leaseholders at the Resident Voice Board on January 15, 2026.
The decision aligns with the council's commitment to addressing the climate emergency, with relevant details integrated throughout the report. Statutory officers, including the Director of Finance and the Director of Legal & Governance, provided comments confirming the robustness of the HRA budget and the absence of legal impediments. The full details of the decisions can be found in the Public reports pack and the HRA Rents and Service Charge Report.
