Rent & Service Charge Increases
📄 Council Rent & Heating Charges: What’s Changing in 2026/27?
A simple guide for Holyrood residents
Southampton City Council has announced changes to rents and heating charges for the 2026/27 financial year. Here’s what it means for tenants and leaseholders in plain English.
🔼 Rent & Service Charges Are Going Up
The council plans to increase rents by 4.8% next year.
This rise affects:
- Council tenants
- Leaseholders who pay a proportion of building costs through service charges
The council says the increase is needed to keep the Housing Revenue Account stable and continue funding repairs and maintenance.
🔽 Heating Charges Are Going Down
Good news for residents on landlord‑controlled heating: Heating charges are expected to drop by 10%.
Why?
- Energy prices have fallen compared to the huge spikes in 2022/23.
- The council previously absorbed the cost increases instead of passing them on, which created a £3.5 million deficit in the heating account.
- Now that energy costs are lower, the council says it can reduce charges and start correcting the deficit.
🔥 What Is Landlord‑Controlled Heating?
Around 5,000 council homes in Southampton still use this system. The council controls:
- When the heating comes on
- The temperature limits
- The overall system settings
Many residents have long felt this system is outdated and restrictive.
🛑 The Council Plans to Scrap the System Entirely
The cabinet member for housing has publicly committed to ending landlord‑controlled heating so residents can control their own heating in future.
There is no timescale yet, but the intention is clear: Residents will eventually have full control over their heating.
💬 What This Means for Holyrood Residents
For Tenants
- Expect a 4.8% rent increase.
- Heating charges should drop by 10%.
- Long‑term: you may eventually get control over your own heating system.
For Leaseholders
- Your service charges may rise in line with the 4.8% increase.
- If you pay into landlord‑controlled heating, you should see a 10% reduction.
- Any future changes to heating systems (e.g., removal of landlord‑controlled heating) may involve consultation or Major Works notices.
📌 Why This Matters
These changes affect:
- Monthly budgets
- Heating affordability
- Future heating independence
- How the council manages the Housing Revenue Account
- How quickly the council can clear the heating‑account deficit
Understanding the changes helps residents plan ahead and know what to expect.