Social landlords in England will be able to raise rents by up to 4.8% next year, following confirmation of September’s inflation figures — a move that cements the parameters for rent setting in 2025/26.

The Office for National Statistics (ONS) announced this week that the Consumer Price Index (CPI) rose by 3.8% in the 12 months to September. Under the government’s 10-year rent settlement, introduced in the 2021 Spending Review, housing associations and councils are permitted to increase rents by CPI plus 1%, setting next year’s ceiling at 4.8%.

However, further changes could be on the horizon. The government is consulting on how to reintroduce rent convergence — a policy allowing landlords to make additional uplifts where current rents fall below “formula rent”.

The figure comes as no surprise to the sector, aligning closely with inflation levels seen throughout the summer. CPI hovered between 3.5% and 3.8% across recent months, providing a relatively stable benchmark after several years of volatility in the aftermath of the pandemic and the cost-of-living crisis.

If adopted, rent convergence would permit increases above the 4.8% limit for affected properties, potentially through a small additional weekly amount. Ministers have suggested an extra £1 or £2 per week, though some sector bodies, including the National Housing Federation, are pushing for a £3 uplift to help social landlords meet rising costs and invest in stock quality.

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