Council tenants in Dudley are bracing for a significant increase in their weekly rent bills, with a confirmed hike and the potential for a further rise pending the Chancellor's autumn statement.
Planned Rent Increase and Budget Uncertainty
Dudley Council has announced its plan to implement the maximum government-allowed rent increase of 4.8% for the 2026/27 financial year. This will raise the average weekly council rent to £103.94, an increase of £4.76 per week for the average tenant.
However, this figure could climb even higher. Chancellor Rachel Reeves is expected to confirm the return of rent convergence in her budget. This policy is designed to bring social housing rents that are below a specific 'formula rent' level up to that target.
If confirmed, this measure could add an extra £1 to £2 per week to the bills of thousands of Dudley tenants.
Balancing Affordability and Sustainability
At a recent meeting of the council's Housing and Assets Scrutiny Committee, Kathryn Jones, the Group Director for Housing and Assets, addressed the challenging balance the authority faces.
"When we are looking at rent setting we need to take a balance between what is affordable for our tenants and what we need to do to ensure the Housing Revenue Account remains sustainable and viable," she stated.
A report presented to the committee clarified that the government's intention with rent convergence is to raise additional funds for investment in both new and existing social housing stock. The policy aims to gradually increase rents for properties that are currently let below their calculated 'formula rent'.
The report further detailed that 12,101 council tenants in Dudley currently pay less than their formula rent. Any convergence increase would be waived if the difference is under £1.
A Silver Lining for Service Charges
Amid the news of rising rents, there was some positive financial news for tenants regarding service charges. These charges, which were set at an average of £8.73 per week when introduced in January 2025, are now set to be reduced.
Councillors were informed that due to cost reductions and operational efficiencies, the authority will lower the average weekly service charge to £8 in the next financial year, providing a small offset to the overall increase in housing costs.
The final decision on the potential additional rent convergence increase is pending the details of the autumn statement, which the council will consider before agreeing on the final rent levels for 2026/27.
