The reintroduction of rent convergence under the latest rent settlement represents a significant policy development for many housing associations. The detail is set out in the Regulator of Social Housing’s Rent Standard 2026. This document confirms the framework for rent setting over the coming years.
At its core, rent convergence is about gradually aligning rents that sit below the government’s formula rent with the formula level over time. Many housing associations hold legacy stock where rents vary for similar homes. These disparities often result from historic funding regimes, transfers, mergers or previous policy decisions. Convergence is intended to address those inconsistencies in a managed and predictable way.
In practical terms, this means that where a home’s current rent is below its formula rent, slightly higher annual increases can be applied within the limits of the rent standard. This helps close that gap gradually rather than in one step. For example, if the formula rent for a two-bedroom social rented home is £120 per week but the current rent is £112 per week, the difference is not applied immediately. Instead, the rent might increase by a few pounds each year. It could move from £112 to £115, then £118, and only reach £120 over several years.
For housing associations, this approach helps create more consistent rent levels across their stock and supports longer-term financial planning. Over time, it improves income predictability. Moreover, it helps align rental income with the cost of managing, maintaining and investing in homes.
However, rent increases are felt directly by residents. Regardless of how gradual they appear in policy terms, affordability pressures remain acute for many households. Even modest increases can have a real impact on household budgets, particularly in the current cost-of-living environment.
This is why communication is critical. Residents need to understand what is changing, why their rent may be increasing slightly faster than the headline annual uplift, and how any additional income will be reinvested in homes and services. Clear, plain-language explanations and consistency of messaging make a significant difference.
Handled carefully, rent convergence can support long-term sustainability and fairness across housing association portfolios. Conversely, handled poorly or implemented without explanation, it risks undermining trust. Ultimately, the pace of change and the quality of engagement will determine whether convergence is seen as a necessary adjustment or an avoidable source of tension.
In practice, rent convergence is not just a technical rent-setting exercise. It is a test of governance, communication and the ability to balance organisational sustainability with resident affordability.