Rent convergence – updated analysis for the social housing sector

CIH, working with Savills and in partnership with the NHF, LGA, NFA, ARCH and CWAG, has published updated analysis to inform the government’s consultation on rent convergence.
 
The government’s Spending Review in June 2025 confirmed that from 2026–2036, social housing rent increases will be capped at CPI+1% each year. Alongside this, the government is consulting on allowing social landlords to bring rents up to formula rent levels more quickly – a process known as rent convergence.
 
This new analysis models the potential impact of three convergence scenarios – £1, £2, and £3 per week – for both local authority and housing association landlords. It considers the effect on:

• Average rents over the next decade
• Additional rental income generated under each option
• Capacity to invest in existing homes and deliver new supply
• Affordability for tenants

You can read the summary report and more detailed slide deck for detailed modelling, assumptions, and projections. Our response to the consultation will be published once submitted.  

For further background see https://www.cih.org/news/cih-responds-to-the-governments-consultation-on-future-rent-policy/