Southwark proposes a 4.5% council rent rise from April 2027, plus £1 a week where rents are below formula. Tenants can comment until 28 November.

Southwark Council is proposing to raise council rents by 4.5% from April 2027. Around 34,000 tenancies could pay up to £1 a week on top. The average council rent in the borough would go up by £7.08 a week, from £136.97 to £144.05.

These are proposals, not a final decision. The council’s Executive Member for Council Homes agreed on 11 November to put them out to consultation, according to the decision notice. The online survey is open until Saturday 28 November.

Why 4.5%, and where the extra £1 comes from

The government’s Rent Standard lets social landlords raise rents by up to CPI inflation plus 1%. The council’s report uses September’s CPI figure of 3.5%, which gives 4.5% for 2027-28.

The extra £1 a week is the government’s new “rent convergence” policy. It applies only where a home’s rent is still below “formula rent”, the level set by a national formula. The extra cannot take a rent above that level.

The council’s report says:

  • around 34,000 tenancies are expected to be below formula rent on 1 April 2027
  • the gap between actual and formula rents is about £28.4m a year
  • even with the extra £1, only about 7.5% of tenants would reach formula rent in 2027-28
  • at £1 a week, full convergence would take at least 15 years on average
  • the government allows up to £2 a week extra from 2028-29

Officers advised against a smaller rise. They said it would widen the gap and cut money for repairs and investment in existing homes.

What the average rent would be

The averages below cover all council homes. The council warns they are not the rise any one tenant will see, because they also reflect new lettings and convergence.

Bedrooms Average 2026-27 Average 2027-28 Rise a week
Studio £106.77 £112.52 £5.75
1 £123.82 £130.28 £6.46
2 £136.97 £144.07 £7.10
3 £150.56 £158.27 £7.71
4 £162.26 £170.51 £8.25
5 £178.42 £187.40 £8.98
6 or more £192.93 £202.54 £9.61
Bar chart of the proposed rise in average weekly Southwark council rent from 2026-27 to 2027-28: studio £5.75, one bed £6.46, two bed £7.10, three bed £7.71, four bed £8.25, five bed £8.98, six or more bedrooms £9.61.
Chart by Dulwich Today. Source: Southwark Council, HRA rent and service charge consultation report, 2027-28.
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Service charges, garages and heating

Estate service charges would rise by 30p a week in total, from £15.15 to £15.45:

  • estate cleaning up 23p to £9.53
  • grounds maintenance up 7p to £2.12
  • communal lighting unchanged at £2.92
  • door entry unchanged at 88p

The sheltered and flexi-care service charge would rise by 25p to £42.57 a week. The council’s three supported hostels face far bigger rises in their service charges, after a review found they did not cover costs. Keyworth would go up 30.5%, Wren 23.8% and Northcott 18.3%.

Garage rents would rise by around 6% to 7%:

Garage charge Now (a week) Proposed (a week)
Standard rate £27.30 £29.00
Blue Badge holders £22.30 £24.00
Small sites £15.00 £16.00
Private sector (incl. VAT) £50.00 £53.00

Heating charges for tenants on communal heating without a meter would be frozen for a third year. So would the borough-wide tariff for older homes with heat meters fitted. Tenants in new-build homes with heat meters would pay more: the council estimates about 6.6% more for an average user in a one-bedroom flat. The report says gas prices are likely to rise by around 15.2% in 2027-28.

The money behind it

Rents and service charges pay for the council’s Housing Revenue Account, which by law can only be spent on council housing. The council’s consultation slides say the account overspent by £1.4m in 2025-26. The latest forecast for 2026-27 is an overspend of around £0.4m. The council blames past government rent cuts and caps, higher building and borrowing costs, and new building safety and damp rules.

What it means for you

  • If you rent from the council: answer the online survey by 11.59pm on 28 November. It asks about the rent rise, the extra £1, service charges, garages and heating.
  • To ask questions: the council is holding an online meeting on Monday 16 November, 6pm to 7.30pm. You can register on the survey page. The South Local Housing Forum also meets in person on 25 November.
  • What happens next: the results go to the Tenant Forum on 1 December and then to the council’s Executive, which makes the final decision. Tenants must get at least 28 days’ written notice of any change before it takes effect.

Sources