Rent convergence details confirmed with cash limits of £1 a week in 2027 and £2 in 2028

“Tenants will benefit where convergence results in higher levels of investment by providers to deliver improvements to the quality and energy efficiency of their homes,” the department said.

“We have also considered the interests of households who would benefit from more social and affordable homes being delivered – such as those who are currently trapped in temporary accommodation or unaffordable and/or unsuitable privately rented housing. We believe this outcome strikes the right balance overall.”

The decision followed submissions to its consultation on proposals for implementing rent convergence in July, after promising to do so in the previous month’s Spending Review. The government sought views on whether the weekly cash limit should be either £1 or £2.

MHCLG said its decision had taken “careful account” of the impact on rent payers and the implications for public spending, as well as the benefits to the supply and quality of social and affordable housing.

The 10-year rent settlement of CPI plus one per cent comes into effect from April this year, with RPs in England permitted to raise their annual rents by up to 4.8 per cent.

Earlier in the day, before the full details were released, Kate Henderson, chief executive of the National Housing Federation, welcomed the return of rent convergence and said the government’s announcements provide “vital certainty” for the sector, delivering a “serious, long-term plan for social housing”.

“The reintroduction of rent convergence after more than 10 years is both fair for tenants and will enable the social housing sector to build vital new affordable homes while increasing investment in existing ones,” she said.

Also speaking earlier in the day, Ian McDermott, chief executive of Peabody and chair of the G15, welcomed the government’s package of reforms – including rent convergence.

He said: “This package of measures is another important step in renewing the social housing system. Greater certainty on rents is extremely welcome, alongside clarity on new decency and energy efficiency standards.

“Crucially, the move towards greater rent fairness over time will help rebuild providers’ financial capacity and support sustained investment in both existing homes and new supply over the next decade.”