Tenants in the South London borough of Wandsworth are set to face significant rent increases from April, with council rents rising by up to 4.8 per cent weekly. This move, which aligns with the maximum increase permitted under government guidelines, will see nearly 17,000 tenants paying an average of £7 more each week on top of existing service charges.
Financial Impact and Housing Revenue
The proposed hikes will elevate average weekly rents for council tenants from £154.48 to £161.49. According to council officials, this adjustment is projected to generate an additional £6.2 million for the Housing Revenue Account (HRA). This ringfenced budget is crucial for managing spending and income related to the council's housing stock, ensuring financial sustainability in a challenging economic climate.
Pressures Driving the Increase
During a recent Housing Committee meeting, authorities highlighted mounting pressures necessitating these changes. Rising operational costs, significant maintenance backlogs, enhanced building safety regulations, and constraints on rent increases in previous years have collectively strained the council's resources. A detailed report from council officers emphasised that increasing weekly rents is essential to maintain the HRA's affordability, enabling the council to preserve existing housing, enhance services, and expand affordable housing provision across the borough.
Investment in Housing Infrastructure
To address these challenges, Wandsworth Council is proposing to inject an extra £242 million into its HRA capital programme over the next three years. This will bring the total budget to £758 million from 2025/26 to 2028/29, funding critical repairs, improvements to current housing, and the construction of new homes through estate regeneration, site development, and property acquisitions. The ambitious Homes for Wandsworth scheme remains on track to deliver over 1,000 new council homes by 2029, a vital step in tackling the local housing shortage.
The Scale of Wandsworth's Housing Crisis
The council's report paints a stark picture of the housing crisis in Wandsworth, mirroring broader issues across London. There is an acute shortage of social housing, with London boroughs collectively spending more than £5 million daily on homelessness in 2024/25. Wandsworth itself has the second-highest rate of statutory homelessness in the capital, with annual spending on homelessness support soaring to £60 million net of government grants. Over 10,000 households are on the housing waiting list, including more than 4,500 families with children living in temporary accommodation, underscoring the urgent need for investment in affordable housing.
Breakdown of Rent Increases by Property Size
The planned rent adjustments vary based on the number of bedrooms in each property, with detailed average weekly increases for 2026/27 as follows:
- Zero bedrooms: £4.47 more per week, or 4.76 per cent
- One bedroom: £5.72 more per week, or 4.64 per cent
- Two bedrooms: £7.04 more per week, or 4.67 per cent
- Three bedrooms: £8.59 more per week, or 4.54 per cent
- Four bedrooms: £8.93 more per week, or 4.22 per cent
- Five bedrooms: £2.98 more per week, or 1.26 per cent
- Six bedrooms: £14.94 less per week, or 5.45 per cent
- Seven bedrooms: £7.94 more per week, or 3.14 per cent
Overall, these changes result in an average rent increase of 4.54 per cent, or £7.01 weekly, reflecting the current rental profile in Wandsworth. Additionally, rents for tenants in temporary accommodation at Nightingale Square and those with shared ownership agreements will also see maximum increases of 4.8 per cent.
Support for Affected Tenants
The council has assured that the planned rent hikes should not directly impact households receiving Housing Benefit or Universal Credit, provided they are not subject to the Total Welfare Benefit Cap. For those not on benefits, support mechanisms are available to assist with financial hardships. The report acknowledges the ongoing cost-of-living crisis and commits to providing financial or other support to tenants in greatest need, demonstrating a balanced approach to fiscal responsibility and social welfare.
Additional Charges and Decision Timeline
Beyond residential rents, the council is proposing an average 3.8 per cent increase in non-residential charges, including for garages and cycle lockers, effective from April 6. The authority's Cabinet is scheduled to vote on these proposals on January 26, with a final decision to be made at the subsequent budget meeting, marking a critical juncture for Wandsworth's housing strategy.
