URL: https://sandwell.moderngov.co.uk/ieDecisionDetails.aspx?ID=1152

Decision Maker: Cabinet

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: Provide a detailed description of the item Approval to adjust council rents and housing related charges with effect from 6 April 2026.

Content: Approval was sought to implement adjustments to Council rents and housing related charges with effect from 6 April 2026, including implementing rent convergence as set out by Government, following endorsement by Full Council at its meeting on 9 December 2025. On 30 October 2024, the Government announced their commitment of at least a 5-year rent settlement from April 2026, following consultation with housing providers. At the Cabinet meeting held on 4 December 2024, Cabinet approved that rent and housing related charges in subsequent years, would be set in line with the Rent Standard and Policy Statement on Rents for Social Housing for at least five years from 1 April 2026 to 31 March 2026, and rolling five years thereafter.   Reason for Decision Each year Council tenants; leaseholders and other residents were notified of the rent and other related housing charges to be set from the following April.   The Council must achieve the right balance between supporting tenants to mitigate the continued cost of living pressures and protecting the Housing Revenue Account (HRA) to ensure the Council can continue to provide affordable social housing for our residents.   On 30 June 2025, the Government announced a 10 year social housing rent settlement from April 2026 at Consumer Price Inflation (CPI) +1%.   Alongside the 10-year rent settlement, the Government announced consultation would follow on how to implement Rent Convergence to bring all social rents into line with a standard formula rent creating greater fairness for tenants.   The Rent Convergence consultation ended on 27 August 2025. The key choices the Government sought views was to increase rent each year by £1 or £2 over and above CPI+1% limit and the length of time of convergence.   The outcome of the consultation was expected to be announced on 26 November 2025 in the Government Autumn Budget. Details would be announced by Government in January 2026.   Alternative Options An alternative would be not to apply or delay implementation of rent convergence in addition to CPI+1%.   Resolved:-   (1)          that following approval by Full Council at its meeting of 9 December 2025 that endorsement and approval is given to the implementation of the following actions:   (a)      authorise the Executive Director of Place to adjust council rents and housing related charges with effect from 6 April 2026;   (b)      increase housing rents by CPI+1%, equivalent to a 4.8% increase, and in addition, where required, implement the maximum Rent Convergence as set by Government from 6 April 2026 and subsequent years, until formula rent is achieved. Details to be announced by Government in January 2026;   (c)      increase the housing service charges by CPI+1%, equivalent to a 4.8% increase;   (d)      increase fees at CPI (announced in month proceeding variation notice being issued) at the traveller’s pitch in Hill View, Tipton, in consultation with residents of the site, in line with Legislation on Mobile Homes (Pitch Fees Act 2023);   (e)      increase rent and service charges on properties that sit outside the Housing Revenue Account (including service tenants for Parks, Sandwell Valley and Caretaking). Rental increase of CPI+1% and service charges by CPI+1%;   (f)        increase the leaseholder annual management fee by CPI+1% from £167.13 to £175.15;   (g)      authorise the Executive Director - Place to implement the maximum rent convergence for the next rent period, and all subsequent years, until formula rent is achieved. Announcement of the decision on Rent Convergence has been deferred by Government to January 2026.  

Date of Decision: December 10, 2025