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Five Top Tips to Prepare for Rent Convergence

From April 2026, social landlords in England will enter a new era of rent setting. The government has committed to a 10-year rent settlement allowing annual increases of up to CPI +1%, and is consulting on how to reintroduce rent convergence as part of that package. The detail is set out in the government’s consultation paper, How to Implement Social Rent Convergence.

Crucially, ministers have confirmed that the level of the convergence uplift – the amount added on top of CPI+1% for homes below formula rent – will be set in the Autumn Budget on 26 November. Options under consideration include a £1 or £2 per week uplift, and sector bodies are debating whether higher uplifts may ultimately be required.

This article outlines what these changes mean in practice and sets out five key actions income teams can take now, ahead of the Budget.

Understanding the Context

Under the government’s proposals, landlords will continue using formula rents as the benchmark. Convergence would allow rents on homes sitting below formula rent to rise by CPI+1% plus the agreed weekly uplift until those rents align.

Sector bodies including the National Housing Federation (NHF), Local Government Association (LGA) and Chartered Institute of Housing (CIH) strongly support a long-term settlement with convergence, arguing it is essential for investment, stock quality and long-term supply. Their consultation responses outline calls for uplifts of £2–£3 per week, rather than the minimum £1.

For income teams, the implication is clear: not all tenants will experience the same uplift. Those in homes historically below formula rent may face sharper increases, shifting arrears risk across the stock.

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Tip 1: Build a Clear Picture of How Your Stock Compares to Formula Rent

Preparing for convergence begins with understanding your starting point. Income teams should work closely with finance and housing management to map each property against its formula rent, identify which homes are below that benchmark, and calculate the scale of the gap. This approach follows the guidance set out in the government’s convergence consultation.

This process includes validating service charge components, establishing whether void relets are set at formula rent, and checking historic caps or exceptions. Doing so enables landlords to anticipate which property groups will see the largest increases (and therefore where collection pressure is most likely to emerge).

Tip 2: Model What Different Uplift Scenarios Could Mean for Arrears

The government’s impact assessment sets out several scenarios: a baseline CPI+1% increase, CPI+1% plus £1, and CPI+1% plus £2 convergence uplifts.  

Meanwhile, the LGA’s modelling argues that a £2–£3 per week uplift may be necessary to return the national Housing Revenue Account to surplus over the medium term.

Income teams should run these scenarios now, examining how different uplift levels could affect arrears, collection rates, write-offs and longer-term viability. This includes testing sensitivity to inflation and assessing how changes in Universal Credit/Housing Benefit caseloads might affect households’ ability to keep pace with rent.

Completing this modelling early will make it easier to respond quickly when the Autumn Budget confirms the final uplift level.

Tip 3: Strengthen Your Affordability and Vulnerability Insight

Rent convergence is not purely technical; it’s a people issue. National research from Shelter indicates that renters across the country are experiencing affordability pressure even before additional rent rises are introduced.

Alongside this, the first year of the new settlement permits rent rises of up to 4.8%, based on CPI+1%, with higher increases for some homes once convergence is applied.

Income teams should map expected rent changes against known vulnerability indicators such as existing arrears, hardship flags, benefit dependency and (where lawfully held) health or disability information. Categorising households into low, medium and high risk enables more targeted and proactive support. Working closely with tenancy sustainment and welfare support teams ensures households have access to benefits checks, financial support and advice.

Tip 4: Ensure Policies, Systems and Communications Are Ready for Change

As the convergence framework firms up, landlords will need to reflect it in their policy and operational documents. Rent-setting and arrears recovery policies should explicitly refer to the 10-year settlement, CPI+1% increases and the convergence mechanism.

Housing management and income systems must also be updated to distinguish between the standard inflation increase and the convergence uplift, and to ensure accurate workflows, notices and reporting.

As emphasised by the NHF in its consultation response, clear, accessible tenant communications will be essential. Landlords will need to explain why some rents are rising faster than others and how those increases support investment in safety, decency, energy efficiency and stock quality.

Smiling income officer in call centre

Tip 5: Equip Income Staff for a New Level of Complexity

Rent convergence will inevitably make frontline conversations more challenging. Income staff should be trained on how the new rent settlement works, how convergence interacts with UC/HB, and how to provide clear and empathetic guidance to tenants.

Call scripts and FAQs can support staff in answering recurring questions, such as why rent is increasing differently across households. Plain-language explanations of convergence, such as those referenced in the CIH’s analysis, can serve as useful templates.

Leaders should also update KPIs and monitoring frameworks to track arrears trends, tenant enquiries, complaints and sustainment outcomes throughout the initial years of convergence, enabling continuous improvement.

The Bottom Line

The sector has long called for a stable, long-term rent framework including convergence, and the government’s proposed 10-year CPI+1% settlement is now taking shape. Sector responses from organisations such as the NHF, LGA and CIH make clear that convergence is essential to long-term investment:

Even though the final uplift, whether that is £1, £2 or potentially more, will not be confirmed until the Autumn Budget, income teams already have enough information to prepare. By mapping stock, modelling scenarios, assessing vulnerability, updating systems and equipping frontline staff, landlords can move into the convergence era ready not only to protect rental income but to support tenants’ long-term sustainability.

For a more detailed breakdown of the impending policy update, its implications and what providers must prepare for, read our in-depth explainer: Rent Convergence: What It Means, Why It Matters, and What Providers Need to Prepare For

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