Limit on annual rent increases 2026-27 - from April 2026
Information about annual rent increases limit from April 2026
Applies to England
Documents
Details
Note
This is applicable from 1 April 2026.
1. Background
1.1 - In September each year the annual Consumer Price Index (CPI) figure is set which is used to establish limits on rents for social housing. The Rent Standard 2026 sets out requirements for how social rents should be increased.
1.2 - Formula rent is used to calculate social rents. Rent caps set the maximum that can be charged for a social rent. These figures change annually because they are linked to CPI. This document includes:
i) How much formula rent must be increased by in 2026-27
ii) Additional data needed to work out formula rent for new properties
iii) The social rent caps for 2026-27
1.3 - Full guidance on how to calculate formula rents can be found in the Policy Statement on Rents for Social Housing (Policy Statement) which is published on the Ministry of Housing, Communities and Local Government website. The Policy Statement sets out the government’s policy on rents that should be applied in the period 1 April 2026 to 31 March 2027.
1.4 - The following tables are also found in Appendix A, paragraphs 8, 9 and 11, of the Policy Statement.
2. Formula rent inflation
2.1 - The following tables must be used to adjust the 2000-01 formula rent to 2026-27 levels.
Table 1: Formula rent inflation
| Year | Inflation | Additional | Total |
|---|---|---|---|
| 2001-02 | 3.3% | 1.0% | 4.3% |
| 2002-03 | 1.7% | 0.5% | 2.2% |
| 2003-04 | 1.7% | 0.5% | 2.2% |
| 2004-05 | 2.8% | 0.5% | 3.3% |
| 2005-06 | 3.1% | 0.5% | 3.6% |
| 2006-07 | 2.7% | 0.5% | 3.2% |
| 2007-08 | 3.6% | 0.5% | 4.1% |
| 2008-09 | 3.9% | 0.5% | 4.4% |
| 2009-10 | 5.0% | 0.5% | 5.5% |
| 2010-11 | -1.4% | 0.5% | -0.9% |
| 2011-12 | 4.6% | 0.5% | 5.1% |
| 2012-13 | 5.6% | 0.5% | 6.1% |
| 2013-14 | 2.6% | 0.5% | 3.1% |
| 2014-15 | 3.2% | 0.5% | 3.7% |
| 2015-16 | 1.2% | 1.0% | 2.2% |
| 2016-17 | N/A | N/A | -1.0% |
| 2017-18 | N/A | N/A | -1.0% |
| 2018-19 | N/A | N/A | -1.0% |
| 2019-20 | N/A | N/A | -1.0% |
| 2020-21 | 1.7% | 1.0% | 2.7% |
| 2021-22 | 0.5% | 1.0% | 1.5% |
| 2022-23 | 3.1% | 1.0% | 4.1% |
| 2023-24 | 10.1% | 1.0% | 11.1% |
| 2024-25 | 6.7% | 1.0% | 7.7% |
| 2025-26 | 1.7% | 1.0% | 2.7% |
| 2026-27 | 3.8% | 1.0% | 4.8% |
2.2 - Different figures applied for the period from 2016-17 to 2019-20 where the type of property concerned was covered by a full or partial exception from the social rent requirements of the Welfare Reform and Work Act 2016:
Table 2: Supported housing formula rent inflation
| Year | Inflation | Additional | Total |
|---|---|---|---|
| 2016-17 | -0.1% | 1.0% | 0.9% |
| 2017-18 | N/A | N/A | -1.0% |
| 2018-19 | N/A | N/A | -1.0% |
| 2019-20 | N/A | N/A | -1.0% |
2.3 - The above figures apply to supported housingfootnote 1 for the period between 2016-17 to 2019-20 (except domestic violence refuge accommodation, as this is covered in table 3 below).
Table 3: Domestic violence, almshouse, co-operative or fully mutual and community land trust accommodation formula rent inflation
| Year | Inflation | Additional | Total |
|---|---|---|---|
| 2016-17 | -0.1% | 1.0% | 0.9% |
| 2017-18 | 1.0% | 1.0% | 2.0% |
| 2018-19 | 3.0% | 1.0% | 4.0% |
| 2019-20 | 2.4% | 1.0% | 3.4% |
2.4 - The above figures apply to domestic violence refuge accommodation; almshouse accommodation; accommodation provided by a co-operative housing association or a fully mutual housing association; and accommodation provided by a community land trust between 2016-17 to 2019-20
3. Rent caps
3.1 - Social rent caps for 2026-27 are as outlined in the following table.
Table 4: Social rent caps for 2026-27
| Number of bedrooms | Rent cap |
|---|---|
| 1 and bedsits | £204.35 |
| 2 | £216.35 |
| 3 | £228.36 |
| 4 | £240.37 |
| 5 | £252.39 |
| 6 or more | £264.41 |
3.2 - From 2027-28, rent caps will continue to increase by CPI (at September of the previous year) plus 1.5 percentage points, each year.
1: As defined by the Social Housing Rents (Exceptions and Miscellaneous Provisions) Regulations 2016 (as amended) ↩