The average council rent in Lewisham could increase by £5.95 per week from April 2026.
Lewisham Council is proposing a rent increase of 4.8per cent on council rents for the next financial year in line with government policy.
The 2026/27 council rent increase has been calculated using the government’s new rent formula, which is made up by a maximum of CPI (Consumer Price Index) and an extra 1per cent. In September 2025, the CPI was 3.8per cent and when an extra 1per cent is added, it amounts to 4.8per cent overall.
According to a report which was presented to Lewisham Council’s Housing Select Committee on Wednesday (January 14), the proposed rent increase will be around £5.95 per week on average.
The report went on to note that the Housing Revenue Account (HRA) faces “significant challenges” in meeting its obligations and the council’s plans for new supply.
Lewisham Council said this is partly due to recent rent caps and reductions which have “severely” impacted how it maintains decent homes, invests in existing stock, meets building safety and regulatory requirements and its ability to continue building new social homes.
There is also potential for some tenants to see further increases to their rent under a revived government policy called Rent Convergence, which is about bringing rents in line with the government’s standard ‘formula rent’.
Properties currently below formula rent would see gradual rental increases, which could be anything between £1 to £3 per week. Once rents reach the standard formula rent levels, the extra increase would stop. The Government is expected to confirm the final rent convergence value before the end of the month.
Garage rents in Lewisham are proposed to increase by 4.5per cent, which represents an increase of 94p per week, and would raise the average basic weekly charge from £20.95 to £21.89.
Council tenants who live in estates or blocks where there is a communal heating system in place are set to see their service charges increase by £7.57 per week (22.28per cent). There are around 1,275 tenants who receive this charge.
For the remaining tenants whose service charge doesn’t include energy or heating bills, they can expect to see their service charge increase by £2.36 weekly (14.14per cent).
The Mayor of Lewisham, Brenda Dacres, and her Cabinet will consider the rent increase proposals, as well as feedback from residents and the Housing Select Committee as part of the overall council budget setting report which is due on February 11, 2026.
