London boroughs are warning that deep cuts to social housing services are inevitable unless ministers back changes to social rent policy later this month.
Councils say failing to act will undermine new housebuilding plans and force reductions in spending on repairs, management and resident services. The cross-party London Councils group is urging the Government to approve social rent convergence of at least £3 per week from April 2026.
Without the additional income, boroughs say their housing costs will continue to outstrip revenue, triggering a real-terms £269m cut to council housing budgets over the next four years.
Borough leaders argue the move would help stabilise fragile housing finances, unlock investment in new council homes and reduce homelessness pressures.
Analysis suggests failing to introduce the £3 rate could result in at least 7,000 fewer council homes being built over the next decade.
Cllr Grace Williams, London Councils’ executive member for Housing & Regeneration, said: ‘We hope 2026 will be the year we turn around the crisis in council housing finances, and rent convergence should be an integral part of that. If the government enable us to introduce a rent convergence rate of £3 per week from April, this will lay the financial foundations of a much better future for London council housing.’
