Why rent rules exist

Social housing rents are set by your landlord following government rules called the Rent Standard. These rules aim to make rent fair, transparent, and consistent across the country.

Your rent can usually:

• Only go up once a year
• Increase by no more than inflation (CPI) + 1% each year (between April 2025 and March 2030)
• Change only after your landlord gives you at least 28 days’ notice

For some tenants, where rents are currently set below the expected level for their home, increases may be slightly higher over time within government rules.

Types of rent in social housing

There are three main types of rent:

• Social rent
• Fair rent
• Affordable rent

Each one is set slightly differently.

Social rent

Most long-standing council and housing association homes are let at social rent levels. These are the lowest type of rent in social housing and are set using national government rules.

How social rents are set

• The government has a standard formula (called formula rent) that landlords must follow, which takes into account:
  • Local earnings – average income in your area
  • Property value – how much your home is worth compared to the national average
  • Number of bedrooms – larger homes have slightly higher rents
• Each home has a ‘formula rent,’ showing what the rent should be if all similar homes were charged fairly.

Under current rules, your landlord can only:

• Increase your rent once a year, and
• By no more than inflation (CPI) + 1%, between April 2025 and March 2030

From April 2027, rent convergence will be introduced as part of the government’s rent policy.

Rent convergence

Not all homes are currently let at their formula rent. In the past, similar homes could have quite different rents, so some tenants pay less (or occasionally more) than the expected level for their home.

From April 2027, further steps will be introduced to gradually bring these rents into line. This is known as rent convergence.

If you pay less than formula rent, your rent may increase slightly faster over time to bring it in line, within limits set by government policy.

• From April 2027, this will include an additional increase of up to £1 per week
• From April 2028, an additional increase of up to £2 per week

Once your rent reaches formula rent, future increases will follow the standard limit (CPI + 1%).

Example: Two similar homes both have a formula rent of £120 a week. Tenant A pays £115. Tenant B pays £120. Tenant B’s rent increases in line with the standard limit (CPI + 1%). Tenant A’s rent may increase slightly more to move towards £120. Once both rents reach £120, they increase in the same way.

Fair rent

Some older tenancies still have fair rent protection — usually homes rented before 15 January 1989. The Rent Officer (from the government’s Valuation Office Agency) decides what a fair rent is. Once this amount is registered, your landlord can’t charge more than that, even if private rents nearby are higher. Fair rents are normally reviewed every two years, or sooner if you or your landlord ask for it.

How the Rent Officer sets a fair rent

• They visit or assess your home and compare it with similar properties in the local area.
• They consider things like:
  • The home’s size, condition, and location
  • The facilities and services included (e.g. heating, garden, cleaning)
  • Any improvements you or your landlord have made
• They must ignore short-term demand or housing shortages — so fair rents don’t rise just because the local market is expensive.
• After reviewing this information, they register a maximum rent for your home.
  • Your landlord can charge less, but not more.
• You’ll receive a written notice of the registered rent, and you can appeal to a tribunal if you disagree with the amount.

Example: If similar homes in your area rent privately for around £180 a week, but your flat is older and includes fewer facilities, the Rent Officer might set your fair rent at £140 a week. Your landlord must not charge more than £140, even if private rents later increase.

Affordable rent

Affordable rent homes are usually newer properties built since 2011.
They can have higher rents than traditional social housing, but they must still be kept lower than private market rents.

How affordable rents are set

• Affordable Rent homes are usually built with help from Homes England or the Greater London Authority (GLA).
• When first let, the rent (including service charges) must be no more than 80% of the local private market rent.
• Market rent means what a similar property would cost to rent privately in your area.
• The rent is then limited by the same annual rule as social rents — CPI + 1% for existing tenants.

Example: If similar private homes rent for £200 a week, the affordable rent could be up to £160 a week (80% of market rent). Your landlord can’t charge more than this, and increases are still capped each year.

In areas where private market rents are very high, even 80% of that amount can still be unaffordable for many residents. This is why some people say that ‘affordable rent’ isn’t truly affordable — especially in expensive areas like parts of London or the South East.

The Rent Standard doesn’t cover every type of home.

It does not apply to:

• Shared ownership housing
• Supported or specialist housing
• Temporary or student accommodation
• Private Finance Initiative (PFI) homes
• Care homes
• Households earning £60,000 or more (these can be charged market rent)

A short history of rent rules

2001: ‘Formula rent’ introduced – a standard way to set social rent

2011: ‘Affordable Rent’ introduced – up to 80% of local market rent

2015: Landlords could charge market rent to households earning £60,000+

2016–2020: Rents had to reduce by 1% each year under government policy

2020–today: Rents can increase each year by CPI + 1% (max 7% in 2023–24)

2027: Rent convergence begins – rents below formula rent can increase by up to £1 per week

2028: Rent convergence extended – rents below formula rent can increase by up to £2 per week

Supported housing

Supported housing is for people who need extra help to live independently.
It includes:

• Sheltered or extra-care housing
• Refuges for people escaping domestic violence
• Hostels for homeless people
• Homes for people with mental health, drug, alcohol, or learning support needs
• Homes for young people leaving care or refugees

Because these homes include extra support services, rents may be higher — but only to cover the cost of that support.

If you’re unsure about your rent

Your landlord must:

• Explain clearly how your rent and service charges are worked out
• Give you notice at least 28 days before any change
• Answer questions if you ask for a breakdown or comparison

If something doesn’t look right, you can:

• Ask your landlord to show how they’ve calculated it
• Check your tenancy agreement to see what kind of rent you pay
• Get advice from your residents’ association, Citizens Advice, or your housing officer

Remember:

• Your rent is set using national rules that limit how much and how often it can rise.
• You have the right to ask your landlord to explain how it’s calculated.