£3 a week is needed for convergence to really support housing associations, Southern Housing have said in their response to the Government’s consultation on how to implement Social Rent convergence.
The consultation, which closed on 27 August, explored different levels of convergence, which is designed to ensure that residents in similar sized homes in similar locations pay similar rents. It addresses inconsistencies in social rents that are unfair on residents and harm the sector’s finances.

Southern Housing’s consultation response highlighted that rents are their key source of income. The organisation said that by gradually bringing rents up to formula rent levels, housing associations can consider development once again. It would also generate sustainable surpluses that fund maintenance, compliance, and service delivery. Because of the key role that convergence plays in bolstering their finances, Southern Housing is calling on government to implement convergence as soon as possible and to apply it until target rents are met.

Paul Hackett CBE, Chief Executive of Southern Housing, said:

“Multiple headwinds have reduced housing associations’ capacity to build, resulting in the collapse of affordable homebuilding – especially in London and the South East. We’re pleased to see government grasp the nettle on stabilising housing association rents, which underpins our ability to build new homes and maintain existing stock. When it comes to convergence levels, only a £3 premium would restore our financial capacity at the pace required to meet both immediate and long-term challenges, while reintroducing much needed fairness into housing association rents.”

To read more about Southern Housing’s response to the consultation visit their website.