How your rent is set

The Government sets out the regulations that all Social Housing Landlords must follow when setting or increasing rents on an annual basis.  The current Government policy allows local authority landlords to increase rents on an annual basis by the rate of inflation, known as the Consumer Price Index (CPI) plus 1%.

The new rent year beginning on Monday 6 April 2026 will continue to follow the Government policy allowing local authority landlords to increase rents on an annual basis by CPI plus 1%.

The Government policy only applies to rent it does not apply to any service charges that are charged separately.

The Council has agreed to implement the increase for the 2026/27 rent year in line with Government policy, this means rents can be increased by a maximum of 4.8% from Monday 6 April 2026.  As a result, the average General Needs social rent for council tenancies will be around £117.34 per week up from the average of around £111.96 in 2025/26.  For Affordable rent tenancies the average rent will be around £223.12 per week up from £212.90 in 2025/26.

We fully understand that any increase in rent will not be good news, and it will have a significant impact on some of our tenants.  If you are concerned about the increase or feel you need help, please contact the Financial Inclusion Team at Colchester Borough Homes for advice and support.  You can contact them by emailing FIT@cbhomes.org.uk

Service Charges

Service charge costs are set to cover the cost of providing a particular service to you and are not calculated using the rent calculation outlined above.  Any change in your service charge will be a direct result of whether the cost of providing the service has increased, decreased, or stayed the same.  Where service charges are separate from your rent a full breakdown of your service charges will be provided when we write to you with your Rent Notice in March.

We aim to provide efficient, well managed services and purchase services from other providers at the best rates possible so that any increases are kept to a minimum.  Unfortunately, the rate of inflation continues to impact a number of services, and this does mean that we have had to reflect this in the service charges for the coming year. 

To help give residents a clearer understanding of the decision, how the additional rent will be used and the support available for tenants we have developed some Frequently Asked Questions (FAQs) below.

Why are you increasing my rent?

We understand that any increase in rent will not be good news.  However, we are committed to ensuring our tenants get the best possible support from the Council and Colchester Borough Homes (CBH).

Government policy allows local authority landlords to increase rents by CPI plus 1%.  The CPI figure was announced on 22 October 2025 and was 3.8% therefore the maximum increase that will be applied to rents from Monday 6 April 2026 will be 4.8%.

We have not taken the decision lightly, but increasing the rents will help us fund our commitments to repair and improve your home and the other properties we rent to tenants, further helping develop a Better Colchester.

How much is my rent increasing by and how have you calculated this?

Rents will increase by inflation (CPI) plus 1%.  CPI was announced in October 2025 at 3.8% so the maximum total increase will be 4.8%.

This means, for example, in 2026/2027 the average General Needs social rent will increase from £111.96 to £117.34 per week an increase of £5.38.

This compares favourably with rents charged by local Housing associations and privately rented homes in Colchester, for example the average weekly rent in 2024 (the most recent published figures available) was £127.42 for Housing associations and £262.50 for privately rented homes.

Rent increases for Affordable rents are also limited by the Governments policy of CPI plus 1% so the maximum increase will be 4.8%.  Additionally, the Council’s policy is to limit the affordable rent charged by capping the rent at the Local Housing Allowance (LHA) rate applicable to the size of the property this means the actual % increase may be lower than the maximum of 4.8% permitted by the Government.  To find your Local Housing Allowance rate go to DirectGov – LHA Rates  

When does the new rent start?

The new rent will take effect from Monday 6 April 2026. The Rent Notice letters will be sent out to all tenants in early March.

Will the rent increases affect my Universal Credit payments?

If you already claim Universal Credit you will not need to complete a brand-new claim with the Department for Works and Pensions (DWP).  Once we write to inform you of your new rent you will need to inform the DWP of the change in rent using your online Universal Credit Journal after the rent increase has been applied. All the information you need to update your Journal will be provided in your Rent Notice that you will receive in March.

As the new rent increase will start on Monday 6 April 2026 you will need to inform the DWP on or just after this date as we cannot do this for you.  We will then be asked by the DWP to verify the increase.

What if Universal Credit doesn’t cover the rent increase?

If your Universal Credit allowance isn’t increased to cover the additional rent increase, we strongly recommend that you contact the Financial Inclusion Team and one of our specialist advisors will help you with budgeting for the increase. You can contact them by emailing FIT@cbhomes.org.uk

I claim Housing Benefit, will this cover the rent increase?

If you are in receipt of Housing Benefit the amount you receive will automatically be amended from 6 April 2026, when the new rent year starts.  The rent notice you receive will show the amended Housing Benefit amount.

Do I have to adjust my Direct Debit mandate, or will you do this automatically for me?

If you pay by Direct Debit you will not have to do anything as they will be automatically adjusted by our finance team.  You will be notified separately of the revised payment amounts.

Do I need to amend my Standing Order with my bank?

If you pay your rent by Standing Order you will need to contact your bank to amend the payment to the new amount advised in your Rent Notice.  Please ensure your Standing Order is set-up for the correct amount as shown in your rent notice to prevent your rent account falling into arrears.

Where can I get debt and budgeting advice?

CBH have a dedicated specialist team that work alongside the rent income team who are trained to ensure you have maximised your benefits, help you manage your finances and support you through changes in circumstances. More information is available on the CBH website https://cbhomes.org.uk/you-and-your-home/money-advice or you can email the team at FIT@cbhomes.org.uk

Alternatively, there is advice and support available from Citizens Advice, National Debt Helpline, or the Money Helper Service.

StepChange Debt Charity – Free Expert Debt Advice.
Debt and money – Citizens Advice
Debt advice | Free debt advice | National Debtline | National Debtline
Free and impartial help with money, backed by the government | MoneyHelper (previously known as Money Advice Service)
Colchester Debt Centre | Debt Counselling and Advice (previously known as Colchester CAP Debt Centre)

Do you have to increase my rent?

It is up to each local authority to decide if they want to implement the permitted increase to rents.  The increase in rent enables us to continue to deliver the high-quality services to tenants. If we didn’t increase the rents, we would have less money to invest in repairing and maintaining your home, keeping residents safe, the upkeep of the surrounding area and in developing new homes.

What will you spend the additional rental income on?

We will use the additional rental income to deliver the objectives set out in the business plan which runs until 2055, including;

• increasing affordable housing supply
• providing healthy and safe homes
• renewing kitchens and bathrooms
• insulating and heating, including roofs and installing energy efficient boilers
• adapting properties to meet tenants’ needs
• improve and modernise sheltered housing schemes

The full Business Plan is available on the website Colchester City Council Housing Revenue Account Business Plan 2025 – 2055  · Colchester City Council

We will keep you informed regularly on how we are performing against all our objectives.  The latest Colchester Borough Homes Annual Report is available on the website or via the link CBH Annual Report 2024-2025

I pay a service charge; will my service charge increase the same as my rent?

Service charges are not calculated in the same way as the rent increase.  Any change in your service charge will be a direct result of whether the cost of providing the services has increased, decreased, or stayed the same. We will provide you with a full breakdown of your service charges when we write to you with your Rent Notice in March.

Has inflation affected my service charges?

Certain service charges have been affected by the rate of inflation.  We aim to recover the cost of providing services and therefore where the cost has increased, this is reflected in the service charge you pay.

What do I do if I can’t afford the increase?

Our priority is to support tenants to sustain their tenancies and we want to help prevent rent arrears occurring as much as you do.  CBH Community Housing Officers and Financial Inclusion Team are trained to ensure you have maximised your entitlement to welfare benefits, help you manage your finances and support you through changes in circumstances.

Please take advantage of this service to help you prepare for the rent increase, more information is available on the CBH website https://cbhomes.org.uk/you-and-your-home/money-advice or you can email the team at FIT@cbhomes.org.uk

Where can I get support and advise to help with the Cost of Living financial pressures?

If you are struggling now or if you are worried about increasing costs in the future, there is help and advice available, please see the council website  Cost of living support  · Colchester City Council.

Our specialist teams can help you apply for financial assistance, support you to get employment or can help you understand what other help you could be eligible for. They will look at everything from benefits, discretionary support, help with food costs as well as accessing local charities or community initiatives.

Even if you are not sure if you would be eligible for help, or you just don’t know where to start, get in touch and call us on 01206 505855 or email benefits.advice@colchester.gov.uk

The Anglian Care Trust have compiled a collection of changes you can make to save you money including hints and tips in the following categories Reducing Everyday Living Costs.pdf (angliacaretrust.org.uk)

• Gas and Electricity
• Water
• Food
• Internet, TV and Landline
• Subscriptions
• Fuel
• Insurance

If you are concerned about paying your Gas, Electricity and Water Bills or have debt with your energy provider, The Green Doctors can help you.  They don’t just offer advice, they take practical action too, from fitting water conservation measures to helping people fill in forms to apply for grants or switch energy providers.  To find out how the Green Doctors could help you, please click on the link Stay Warm, Stay Well – Groundwork

Contact us

If you need to contact us online is the quickest and easiest way of getting in touch Contact Us – Colchester Borough Homes (cbhomes.org.uk), there are many ways of contacting us so please choose the option that is easiest for you.

If you would rather speak to us, please call 01206 282514.