The Leader of the Council and Executive Councillor for Housing, Partnerships and the Local Plan, Councillor Stephen Conway, approved the Affordable Rent Setting Policy for implementation from August 2026. This policy establishes the framework for setting and reviewing rents for council-owned low-cost rental accommodation.

Affordable Rent Setting Policy

Councillor Stephen Conway approved the Affordable Rent Setting Policy for Wokingham Borough Council's Housing Landlord Service. This policy, effective from August 2026, formalises the council's approach to setting and reviewing rents for council-owned low-cost rental accommodation within the Housing Revenue Account. The policy aligns with the Rent Standard 2026 and the Government's policy statement on rents for social housing.

Key aspects of the policy include:

• Annual Rent Setting: Rents will continue to be set through the annual Housing Revenue Account budget-setting process, ensuring transparency and appropriate governance.
• Rent Convergence: The policy includes the option to apply rent convergence¹ where permitted by the Rent Standard 2026. However, any decision to implement rent convergence in a specific financial year will require separate approval from the Council through the annual Housing Revenue Account budget-setting process.
• No Rent Flexibility Above Formula Rent: Wokingham Borough Council has decided not to apply rent flexibility above formula rent², citing a commitment to a simple, transparent, and consistent approach, and deeming it not cost-effective given the council's stock profile and available information.
• No Higher Rents for High-Income Tenants: The council will not implement higher rents for high-income social tenants, as it currently lacks reliable household income information to operate such an approach efficiently.
• Financial Implications: The approval of the policy itself does not incur direct additional costs. Any rent income implications will be managed through the approved Housing Revenue Account budget-setting process. The report illustrated that a potential increase of CPI plus 1% (3.8%) would raise the average weekly rent to £152.04, with a further potential £1 rent convergence increase bringing it to £153.04. It was noted that approximately 66% of tenants are in receipt of Universal Credit or Housing Benefit, meaning rent increases would typically be covered by corresponding benefit payments, subject to individual eligibility.

The policy was developed following consultation with the Housing Leadership Team, Housing Services, the Rental Income Team, Local Housing Companies (Loddon Homes Ltd and Berry Brook Homes Ltd), the Housing Innovation Partnership, and Resident Volunteers. An initial Equality Impact Assessment was conducted, concluding that a full assessment was not required at this stage, though the implementation of the policy will be monitored for any disproportionate impact on specific groups.