Rent levels for council houses on Wearside are set to rise following a decision by city leaders.
Sunderland City Council’s cabinet of senior Labour councillors has given the green light to amended housing rent levels for the 2026/27 financial year.
Since becoming a registered provider of social housing at the end of November 2019, the council has increased its housing stock and, according to council documents, now has 182 tenants.
Rents are charged at an affordable rent level (80 per cent of market rent) in line with standards which dictate how registered providers of social housing must set, and increase, social rents.
Under Government policy, registered providers of social housing can increase rents by a maximum of the consumer price index (CPI), plus one per cent, per year.
Changes agreed by senior councillors at a cabinet meeting on February 12, 2026, will see new housing rent levels come into force from March 31, 2026, for tenants of council-owned and managed social and affordable housing.
Rent increase distribution
This includes the council proposing “increasing rents in line with the Government’s Rent Policy of CPI plus one per cent (4.8 per cent) as this provides a balance between affordability for tenants and the cost to the council for providing housing services”.
A report to cabinet noted that of the 182 council tenants on Wearside, a total of 27 (15 per cent) would receive the “full rent increase”.
It was noted that 137 tenants (75 per cent) are in receipt of full housing benefit and will “not see any rent increase as this is covered by their benefits” and that the remaining 18 tenants (10 per cent ) will see “some rent increase as they only receive partial benefits”.
The cabinet report noted that “the biggest increase for a full rent payer is £6.76 per week, and the lowest increase is £3.38 per week” and that the “average proposed gross rent increase across the council’s social and
affordable housing stock is £6.16 per week”.
Council documents also noted that the council’s housing operations team will “continue to manage rent payments and provide support to tenants to enable them to pay their rent, household bills and sustain their tenancies”.
Cabinet report
The cabinet report adds: “It is therefore proposed that all tenants are notified in writing of the rent increase by February 28, 2026, to comply with the required notice period.
“The written notice provided to tenants will inform them of the rent
increase using gross rent figures which will not show housing benefit or
housing elements on universal credit payments.
“Housing benefits will however be recalculated to take account of the new gross rent figure and council staff will be available to provide advice and support to tenants as required.”
It was also noted that “82 of the 182 properties are subject to separate service charges where the council provides services for common parts within multi-occupation buildings / sites”.
According to the cabinet report, these service charges “will also increase and will be set at the level of inflation the service provider sets for 2026/27 (3.5 per cent) rather than in line with the Government’s Rent Standard”.
Tenants are expected to be informed in writing of this increase in service charge at the same time as the housing rent increase notice is issued, with the “service charge and rent increase being incorporated within the gross rent figure.”
Councillor Kevin Johnston on rent changes
Councillor Kevin Johnston, Sunderland City Council’s cabinet member for housing, regeneration and business, gave a presentation on the rent changes at a cabinet meeting at City Hall on February 12, 2026.
The senior councillor said the proposed increases “align with the council’s approved rent and service charge policy and Government legislation” and would allow the council to “optimise income generation to fund repairs, maintenance, housing management services and future investment”.
The meeting was told that an option of applying a lower rent increase was also considered but not progressed as it was expected to “undermine the financial sustainability of the housing service and risk non-compliance with the regulatory standards”.
“The proposed increase is calculated on the basis of the CPI plus one per cent which at the point of calculation in September, 2025, results in a proposed increase of 4.8 per cent,” Cllr Johnston said.
“The increase will apply from March 31, 2026, with tenants being notified in writing by February 28, 2026, in accordance with the statutory guidelines.
“The average weekly rent increase across the council’s social and affordable housing portfolio will be £6.16, with increases for full rent payers ranging from £3.38 to £6.76 per week.
“Housing benefit and universal credit allocations will be recalculated to reflect the new rent levels and support will be available to tenants as needed.”
More information on the rent increase plan can be found by visiting Sunderland City Council’s website.
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