The government’s upcoming decision on social rent convergence will “lay the financial foundations” for building thousands of new council homes in the capital and stabilising social housing budgets, London boroughs have declared.
With the government set to confirm its policy this month, the cross-party London Councils group is asking the government to enable a social rent convergence rate of at least £3 per week from April 2026.
Rent convergence, which was government policy between 2002 and 2015, helps ensure residents in similar socially rented properties pay the same rent.
Cllr Grace Williams, London Councils’ Executive Member for Housing & Regeneration, said: “Boroughs want to boost investment in council housing, but instead we face stark budget pressures and real-terms cuts.
“We hope 2026 will be the year we turn around the crisis in council housing finances, and rent convergence should be an integral part of that. If the government enable us to introduce a rent convergence rate of £3 per week from April, this will lay the financial foundations of a much better future for London council housing.
“Boroughs are determined to work with ministers to deliver on our shared ambitions for housing. This includes making sure social rent levels are fair for tenants, put budgets in a healthier position, and bring investment for the much-needed new social homes that will help reduce homelessness and boost economic growth.
“But without rent convergence at an adequate rate, we fear continuing budget shortfalls holding back delivery of the new council homes we all want to see.”
Cllr Claire Holland, Chair of London Councils and Leader of Lambeth Council, has been awarded an OBE in recognition of her contribution to local government and public service. 
